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What Is the Farm Bill?

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Order Code RS22131 Updated June 19September 18, 2008 What Is the “Farm Bill”? Renée Johnson Specialist in Agricultural Policy Resources, Science, and Industry Division Summary The farm bill, renewed about every five years, governs federal farm and food policy. The previous omnibus bill is the 2002 farm bill (P.L. 107-171), covering a wide range of programs, including commodity price and income support, farm credit, agricultural conservation, research, rural development, and foreign and domestic food programs, among others. In 2007, both the House and Senate completed committee and floor action on their respective versions of the new farm bill. Many provisions of the 2002 farm bill expired in September 2007, but were extended under a series of temporary extensions, with the extension lasting through late May 2008. On May 21-22, both the House and the Senate voted to override a presidential veto of the conference agreement on the 2008 farm bill (H.R. 2419, the Food, Conservation, and Energy Act of 2008), and the conference bill became law on May 22, 2008 (P.L. 110-234). However, an enrolling error resulted in one title of the bill (Title III, Trade) being omitted from the version that was sent to the White House, and the newly enacted law contains 14 of 15 farm bill titles. To resolve this issue, both the House and Senate passed a version of the 2008 farm bill with all 15 original bill titles (H.R. 6124). The President vetoed H.R. 6124 on June 18, but both the House and Senate voted to override the veto that same day and the bill became law (P.L. 110-246), replacing P.L. 110-2342008 farm bill (P.L. 110-246, Food, Conservation, and Energy Act of 2008) was enacted into law on June 18, 2008. It contains 15 titles covering support for commodity crops, horticulture and livestock, conservation, nutrition, trade and food aid, agricultural research, farm credit, rural development, energy, forestry, and other related programs. It also includes tax-related provisions to offset some new spending initiatives in the rest of the bill. The bill succeeds the most recent 2002 farm bill (P.L. 107-171) and is to guide most federal farm and food policies through FY2012. What Is the “Farm Bill”? Federal farm support, food assistance, agricultural trade, marketing, and rural development policies are governed by a variety of separate laws. Although many of these policies can be and sometimes are modified through freestanding authorizing legislation, or as part of other laws, the omnibus, multi-year farm bill provides an opportunity for policymakers to address comprehensively most of the programs of the U.S. Department of Agriculture (USDA).1 The omnibus character of the bill agricultural and food issues more comprehensively. The omnibus farm bill is renewed about every five years.1 The omnibus nature of the farm bill can create a broader coalition of support among sometimes conflicting interests for policies that, individually, might not survive the legislative process. This same climate can can also stir fierce competition for available funds. 1 There have been several omnibus farm bills (2002, 1996, 1990, 1985, 1981, 1977, 1973). Major prior agriculture legislation occurred in 1970, 1965, 1956, 1954, 1949, 1948, 1938, and 1933. CRS-2 The 2008 conference bill (H.R. 2419, The Food, Conservation, and Energy Act of 2008) — intended to replace current law (P.L. 107-171) — contains 15 farm bill titles: ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Title I, Commodities: Support for selected commodities, including wheat, grains, cotton, rice, oilseeds, peanuts, sugar, and dairy. Support may be through direct payments, counter-cyclical payments, marketing loans, government purchases, marketing quotas, and/or import barriers. Title II, Conservation: Environmental stewardship of farmlands and improved management practices through land retirement and working lands programs, among other programs geared to farmland conservation, preservation, and resource protection. Title III, Agricultural Trade and Food Aid: U.S. agriculture export and international food assistance programs, and various World Trade Organization (WTO) obligations. Title IV, Nutrition: Domestic food and nutrition and commodity distribution programs, such as food stamps and supplemental assistance. Title V, Farm Credit: Federal direct and guaranteed farm loan programs. Also specifies loan eligibility rules and other policies. Title VI, Rural Development: Business and community programs for planning, feasibility assessments, and coordination activities with other local, state, and federal programs, including rural broadband access. Title VII, Research: Agricultural research and extension programs, including biosecurity/response, biotechnology, and organic production. Title VIII, Forestry: USDA Forest Service programs, including forestry management, enhancement, and agroforestry programs. Title IX, Energy: Bioenergy programs and grants for procurement of biobased products to support development of biorefineries and assist eligible farmers, ranchers, and rural small businesses in purchasing renewable energy systems, as well as user education programs. Title X, Horticulture and Organic Agriculture: A new farm bill title covering fruits, vegetables, and specialty crops and organic agriculture. Title XI, Livestock: A new farm bill title covering livestock and poultry production, inspections, country-of-origin labeling, and related programs. Title XII, Crop Insurance: A new farm bill title covering crop insurance and assistance previously included in the miscellaneous title. Title XIII, Commodity Futures: A new farm bill title covering reauthorization of the Commodity Futures Trading Commission (CFTC). Title XIV, Miscellaneous: Other types of farm programs and assistance, including those not covered in other titles. Title XV, Trade and Tax Provisions: A new title covering tax-related provisions intended to offset spending initiatives for some programs. What Is the Current Policy Setting? Several major issues have framed the 2007-2008 farm bill debate. For example, are current commodity support and risk management programs equitable across all producers of program crops and specialty crops? Should program payments be limited per person? Is permanent disaster assistance needed in addition to crop insurance programs? There is general consensus to increase funding and expand current programs in the areas of CRS-3 conservation, forestry, bioenergy, rural development, agricultural research, farm credit, marketing and export promotion, foreign food aid, and domestic food and nutrition. What will be the source of funding to expand programs, given current budgetary constraints? Budgetary Considerations. As with all federal programs, the farm bill debate has been influenced by budgetary constraints imposed by Congress. Recent federal deficits have raised concerns with respect to reauthorization or expansion of current farm programs. Prior to congressional consideration of a new farm bill, budget projections showed a lower baseline budget for agriculture programs, mainly because high commodity prices have caused projections of future farm program spending to fall sharply under current law projections. The Congressional Budget Office’s (CBO’s) March 2007 baseline budget served as the official benchmark for the FY2008 budget resolution and for scoring the budgetary impacts of the new farm bill. The CBO baseline assumed continuation of current farm bill policies under expected economic conditions. The budget resolution set the actual spending constraints for the agriculture committees as they drafted a new farm bill. In May 2007, Congress approved the FY2008 budget resolution, which adopted the baseline budget as the fiscal parameter for the next farm bill. It also included a $20 billion reserve fund (above baseline) for new farm bill spending over five years.2 However, any new spending was required to be deficit-neutral, meaning that it would have to be offset with equivalent reductions in other federal spending for existing mandatory programs, or by raising revenues. Large increases in the market prices of corn and other commodities since the summer of 2006 contributed to a lower March 2007 baseline for farm program spending. The March 2007 baseline projected spending for commodity support payments under current law to be $42.4 billion for the FY2008-FY2013 period, about $30 billion lower than actual spending in the previous six years (Table 1). Baseline estimates for mandatory conservation programs and the food stamps program for the next six years were higher compared to the previous six years. For more information, see CRS Report RS22694, Farm Bill Budget and Costs, 2002 vs. 2007. Table 1. 2002 Farm Bill Actual Spending (FY2002-FY2007 est.) and the March 2007 CBO Baseline (FY2008-FY2013) Baseline (FY08-FY13) Actual (FY02-FY07) Baseline vs. Actual (outlays in $ millions) Commodity Conservation Support 42,446 26,496 72,934 -30,488 18,323 +8,173 2,005 Food Stamps 225,845 1,648 +357 178,158 +47,687 Exports Total 296,792 271,063 +25,729 Source: Compiled by CRS from various Congressional Budget Office (CBO) baselines. 2 Concurrent Resolution on the Budget for Fiscal Year 2008, Deficit-Neutral Reserve Fund for the Farm Bill (H.Rept. 110-153, conference report, Section 307). CRS-4 Trade Negotiations and Commitments. The farm bill debate has also been influenced by obligations concerning the design and size of farm subsidies under the World Trade Organization (WTO) Agreement on Agriculture, as well as by the U.S. position in the Doha Round of multilateral negotiations. Agreement in the Doha Round was expected to converge in 2007 with the expiration of the 2002 farm bill, and to occur well before the June 30, 2007, expiration of Trade Promotion Authority (TPA), which provides for expedited congressional consideration of trade agreements. Some policymakers wanted a Doha Round agreement so that the next farm bill could be made consistent with new farm trade rules; others argued that the United States should not unilaterally change its own subsidy programs ahead of any multilateral trade agreement. Although progress in the Doha Round stalled in 2006, criticisms and legal challenges by some WTO member countries of current U.S. farm programs have continued.3 EU officials have publicly stated that the proposed changes to U.S. domestic support programs that are being considered by Congress likely do not go far enough in meeting Doha Round objectives for farm trade policy reform. The Administration’s Policy Recommendations. In January 2007, the Bush Administration released its own detailed recommendations for the farm bill that aimed to substantially alter some aspects of the current commodity support system, while enhancing conservation, rural development, trade promotion, domestic food assistance, farm credit, energy, and research. These proposed changes would faced potential funding obstacles, given current budget constraints. Nevertheless, the Administration has repeatedly said it would veto any legislation that included certain revenue and tax-related provisions being considered by Congress, as well as legislation that failed to implement certain policy changes, including cuts in farm income subsidies, among other policy issues and concerns. On May 21, the Bush Administration vetoed H.R. 2419. A second bill containing all 15 original farm bill titles, H.R. 6124, was again vetoed on June 18. The Administration’s stated approach for the farm bill was to take a “reform-minded and fiscally responsible approach to making farm policy more equitable, predictable and protected from challenge.”4 In part, this referred to the perceived need to more evenly distribute federal program spending and benefits across a larger share of the U.S. farm community, as well as the perceived need to modify current farm programs to better comply with WTO obligations and limit future legal challenges from other countries. Some of these same concerns were voiced in recommendations and proposals by other organizations and interest groups. For more information on the USDA proposal, see CRS Report RL33916, The USDA 2007 Farm Bill Proposal: Possible Questions. Other Recommendations/Proposals. The 2007/2008 farm bill debate differed from the 2002 debate in the number and scope of proposals seeking changes to existing legislation, some of which gained support within and outside Congress. In addition to the Administration proposal, several organizations and interest groups released their own 3 For more information, see CRS Report RL33144, WTO Doha Round: The Agricultural Negotiations; CRS Report RL33697, Potential Challenges to U.S. Farm Subsidies in the WTO; and CRS Report RL33853, Canada’s WTO Case Against U.S. Agricultural Support. 4 USDA, “Johanns Unveils 2007 Farm Bill Proposals,” Release No. 0020.07, January 31, 2007, at [http://www.usda.gov/wps/portal/usdahome]. CRS-5 farm bill recommendations. These included state organizations, national farm groups, commodity associations, conservation and rural development organizations, and several non-traditional interest groups. These policy recommendations represented diverse interests seeking objectives ranging from maintaining current programs to substantially altering or eliminating them. Some of these recommendations were incorporated into legislation introduced by some Members of Congress during the debate, who sought to directly challenge the existing farm legislation and programs through comprehensive and broad-based proposed legislative changes. Others in Congress were reluctant to change current programs because they are strongly supported by the long-time beneficiaries. What Is the Status of Current Congressional Action? On May 14, 2008, the House passed the conference agreement on the 2008 farm bill (H.R. 2419, The Food, Conservation, and Energy Act of 2008) by a vote of 318-106. The next day, the Senate passed the same bill by a vote of 81-15. On May 21, the Bush Administration vetoed the legislation.5 Both the House and the Senate voted to override the veto, and the conference bill became law on May 22, 2008 (P.L. 110-234). However, an enrolling error resulted in one title of the bill (Title III, Trade) being omitted from the version that was sent to the White House. To resolve this issue, both the House and Senate passed a version of the bill with all 15 original bill titles (H.R. 6124). The President vetoed H.R. 6124 on June 18, but both the House and Senate voted to override the veto that same day. The bill became law (P.L. 110-246) and replaces P.L. 110-234. The final conference agreement completes congressional action that started in earnest in early 2007. Following House Agriculture Committee action beginning in March 2007, the House passed its version of the farm bill (H.R. 2419) on July 27, 2007. The Senate Agriculture Committee approved its version (S. 2302) in October and, on December 14, the Senate completed floor action on its bill, which was offered as a substitute to the House bill. Conference negotiations were initially delayed because of differences between committee leadership and the Administration. However, many provisions of the 2002 farm bill expired in September 2007. Consequently, Congress temporarily extended portions of the expiring farm bill until March 15, 2008, as part of the Consolidated Appropriations Act for FY2008 (P.L. 110-161), followed by a series of other short-term extensions lasting through May 23. A timeline showing a chronology of major events is provided at the end of this report. The conference bill amends current law covering support for commodity crops, horticulture and livestock production, conservation, nutrition, trade and food aid, and other agriculture-related programs. It also includes tax-related provisions that would make certain changes to tax laws, intended to offset new spending initiatives. Using the March 2007 baseline, the Congressional Budget Office (CBO) estimates the total cost of the 2008 conference bill (i.e., baseline plus new funding) at just under $289 billion over FY2007-FY2012. More information is available in CRS Report RL33934, Farm Bill Legislative Action in the 110th Congress, and other CRS reports on the farm bill. 5 Among the concerns cited by the Administration is the inclusion of certain revenue- and tax-related provisions in both bills, concerns that the legislation does not include certain policy reforms in farm income subsidies, and possible incompatibility with U.S. obligations under the WTO, among other policy issues. CRS-6 Table 2. 2007 Farm Bill Timeline May 2005 — Comprehensive farm bill recommendations are released by major farm and non-farm organizations. July 7, 2005 — U.S. Department of Agriculture (USDA) begins its series of 52 farm bill forums nationwide. February 6, 2006 — House Agriculture Committee begins field and Congressional hearings to review federal farm policy. June 23, 2006 — Senate Agriculture Committee begins field and Congressional hearings to review federal farm policy. January 2007 — House and Senate Agriculture Committees begin hearings on selected farm bill topics. January 31, 2007 — USDA releases its farm bill recommendations, covering each title of the current law. February 2007 — House and Senate introduce comprehensive bills recommending broad changes to current law. March 21, 2007 — Congressional Budget Office (CBO) releases its multi-year March baseline estimate of spending. March 21, 2007 — House Agriculture Committee begins subcommittee markup on the farm bill (H.R. 2419). May 17, 2007 — Congress approves the FY2008 budget resolution, adopting the baseline budget as the fiscal parameters and including a $20 billion reserve for the new farm bill. July 17, 2007 — House Agriculture Committee begins full committee markup on the farm bill (H.R. 2419). July 26-27, 2007 — Floor debate and passage of H.R. 2419 in the House. October 4, 2007 — Senate Finance Committee approves a bill (S. 2242) that would create new tax credits and a disaster trust fund for farmers, as part of the 2002 farm bill reauthorization. October 24, 2007 — Senate Agriculture Committee begins full committee markup on its farm bill (S. 2302). November 5, 2007 — Senate floor debate begins, with the Senate Agriculture Committee Chairman offering an amended Senate bill as a substitute (S.Amdt. 3500) to H.R. 2419 (and includes provisions in S. 2242). November 16, 2007 — Senate fails to invoke cloture on the Senate version of the farm bill. December 14, 2007 — Floor debate and passage of the Senate farm bill, which was offered as a substitute to H.R. 2419. December 26, 2007 — The Consolidated Appropriations Act for FY2008 (P.L. 110-161) is signed into law and extends certain expiring provisions of the 2002 farm bill until March 15, 2008. February 4, 2008 — Senate appoints conferees. March 12, 2008 — Congress approves a one-month extension (P.L. 110-196) that lasts through April 18. April 9, 2008 — House appoints conferees. April 17, 2008 — Congress approves a one-week extension (P.L. 110-200) that lasts through April 25. April 24, 2008 — Congress approves a one-week extension (P.L. 110-205) that lasts through May 2. May 1, 2008 — Congress approves a two-week extension (P.L. 110-208) that lasts through May 16. May 8, 2008 — House and Senate farm bill conferees announce details of the completed conference agreement. May 14-15, 2008 — The House passes the conference agreement (H.R. 2419, the Food, Conservation, and Energy Act of 2008) by a vote of 318-106. The Senate passes the conference agreement by a vote of 81-15. Both the House and Senate pass a one-week extension (P.L. 110-208) through May 23. May 21, 2008 — The Administration vetoes the legislation. The House votes (316-108) to override the veto of H.R. 2419. An enrolling error resulted in one title being omitted from the vetoed bill sent to the White House. May 22, 2008 — The Senate votes (82-13) to override the veto of H.R. 2419. The bill becomes law (P.L. 110-234), but does not contain one of the 15 titles, Title III (Trade). The House passes H.R. 6124 containing 15 farm bill titles. June 5, 2008 — The Senate passes H.R. 6124 with all original 15 farm bill titles. June 18, 2008 — The President vetoes H.R. 6124. Both the House (80-14) and the Senate (317-109) vote to override the veto and the bill becomes law (P.L. 110-246) The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, “2008 farm bill”) is the most recent omnibus farm bill. It was enacted into law on June 18, 2008, and succeeded the 2002 farm bill.2 The farm bill governs federal farm and food policy, covering a wide range of programs and provisions, and, as noted above, undergoes review and renewal roughly every five years. The 2008 farm bill contains 15 titles encompassing commodity price and income supports, farm credit, trade, agricultural conservation, research, rural development, energy, and foreign and domestic food programs such as 1 There have been seven omnibus farm bills since the 1970s (2008, 2002, 1996, 1990, 1985, 1981, 1977). Prior farm legislation was in 1973, 1970, 1965, 1956, 1954, 1949, 1948, 1938, and 1933. 2 Farm Security and Rural Investment Act of 2002 (P.L. 107-171). CRS-2 food stamps and other nutrition programs, among other programs. More information on individual titles and programs in the 2008 farm bill is in CRS Report RL33934, The 2008 Farm Bill: A Summary of Major Provisions and Legislative Action. What Is the Cost? The Congressional Budget Office estimates the total cost of the 2008 farm bill (i.e., baseline plus new funding, using its March 2007 baseline) at just under $289 billion over FY2008-FY2012 (Table 1). The costs discussed in this report are mandatory outlays not subject to annual appropriations decisions. The farm bill also authorizes discretionary programs that require appropriators to allocate funds and thus are not accounted for here. Table 1. CBO Estimated Costs for the 2008 Farm Bill (FY2008-FY2012) (outlays in million $) FY2008-FY2012 Baseline CBO Score (change) Commodities (Title I) 43,354 (1,726) Conservation (Title II) 21,392 2,720 Trade/Food Aid (Title III) 1,823 30 186,005 2,897 Nutrition (Title IV)a Credit (Title V) (1,046) (378) Rural Development (Title VI) 72 122 Research (Title VII) 290 31 Forestry (Title VIII) 0 38 Energy (Title IX) 41 602 Horticulture/Organic (Title X) — 402 Livestock (Title XI) — 1 Crop Insurance (Title XII) 25,718 (3,860) Commodity Futures (Title XIII) — 0 Miscellaneous (Title XIV)b 6,338 44 Disaster Assistance (Title XV) — 3,807 Tax/Other (Title XV) — 279 283,987 5,009 Total 41,628 24,112 1,853 188,902 (1,424) 194 321 38 643 402 1 21,858 0 6,382 3,807 279 288,996 FY2008-FY2017 Baseline CBO Score Total (change) 87,179 (1,658) 85,521 50,699 4,000 54,699 3,715 (78) 3,637 397,131 9,218 406,349 (2,321) (306) (2,627) 72 149 221 1,290 (907) 383 0 45 45 43 836 879 — 938 938 — 1 1 52,743 (5,591) 47,152 — 0 0 13,668 (138) 13,530 — 3,807 3,807 — (9,695) (9,695) 604,218 621 604,839 Source: Compiled by CRS using the Congressional Budget Office (CBO) March 2007 baseline and CBO score of the conference agreement for H.R. 2419, the Food, Conservation, and Energy Act of 2008. a. New outlays for the expanded Fresh Fruit and Vegetable program required in the nutrition title, $274 million (FY2008-FY2012) and $1.020 billion (FY2008-FY2017), are not reflected in this table because they are effectively offset with money from permanent appropriations under Section 32, mandated in Title XIV. b. Excludes estimates for crop insurance provisions previously included as part of the farm bill’s miscellaneous provisions. Of the $289 billion in total five-year budget authority for programs under the new law — not including revenue and cost-offset provisions in the bill — about $42 billion (14%) in projected spending will support commodity crops, $189 billion (65%) will support the cost of domestic nutrition programs, $24 billion (8%) will support conservation programs, and $22 billion (8%) will support crop insurance. Another $8 billion is expected to be spent on trade, horticulture and livestock production, rural development, research, forestry, energy, and other programs. The bill also includes nearly $4 billion in costs to pay for supplemental disaster assistance (included under Title XV). CRS-3 What Are the Key Farm Bill Provisions by Title? Below is a summary of the types of provisions and programs of individual titles in the 2008 farm bill. More information is in CRS Report RL33934, The 2008 Farm Bill: A Summary of Major Provisions and Legislative Action, and other CRS reports. Title I: Commodity Programs. For the major commodity crops — grains, oilseeds, and cotton — the 2008 farm bill generally continues the farm commodity price and income support framework of the 2002 farm bill. It revises payment limitations by tightening some annual limits and relaxing others, and adjusts target prices and loan rates for some commodities. It continues the direct payment, countercyclical payment, and marketing loan programs for the 2008-2012 crop years. The bill creates a pilot revenue-based counter-cyclical program — the Average Crop Revenue Election (ACRE) program — beginning with the 2009 crop year. It also has a pilot program for planting flexibility, restricts base acres developed for residential use, and eliminates benefits to farms with less than 10 acres. For dairy, the 2008 farm bill extends, with modifications, two federal programs that support milk prices and dairy farm income — the dairy price support program (DPSP) and the Milk Income Loss Contract (MILC) program. It also authorizes farmers to voluntarily enter into forward price contracts as part of the federal milk marketing order program, among other dairy-related provisions. The bill also continues the sugar program that supports prices for domestic producers and processors. To address the possibility of increased sugar imports from Mexico under the North American Free Trade Agreement, the enacted bill mandates an 85% market share for U.S. sugar producers and creates a sugar-for-ethanol program to sell surplus sugar to ethanol producers. Across all commodities, CBO data show estimated total five-year outlays for the title at $41.6 billion (FY2008-FY2012, Table 1). For more detailed information, see CRS Report RL34594, Farm Commodity Programs in the 2008 Farm Bill, CRS Report RL34036, Dairy Policy and the 2008 Farm Bill, and CRS Report RL34103, Sugar Policy and the 2008 Farm Bill. Title II: Conservation. The 2008 farm bill reauthorizes almost all 2002 farm bill conservation programs, modifies several programs, and creates several new conservation programs. The bill makes changes to and/or expands both working lands programs, such as the Environmental Quality Incentives Program and the (renamed) Conservation Stewardship Progra, and land retirement programs, such as the Conservation Reserve Program and the Farmland Protection Program. Program changes address eligibility requirements, program definitions, enrollment and payment limits, contract terms, evaluation and ranking criteria, and other administrative issues, among other program conditions. Producer coverage across most programs is also expanded to include beginning, limited-resource, and socially disadvantaged producers; specialty crop producers; and producers transitioning to organic production. The enacted bill also creates new conservation programs to address emerging issues and priority resource areas, and also new subprograms under existing programs. CBO data show estimated total five-year outlays for this title at $24.1 billion (FY2008-FY2012). For information, see CRS Report RL34060, Conservation and the 2008 Farm Bill. CRS-4 Title III: Trade. The 2008 farm bill reauthorizes and amends USDA’s food aid, export market development, and export credit guarantee programs. The bill reauthorizes the largest U.S. food aid program, the P.L. 480 food aid program, along with other smaller programs that provide food aid to countries that are promoting the development of market-oriented agricultural sectors (Food for Progress) or school feeding and nutrition programs (the McGovern-Dole International School Feeding and Child Nutrition Program). It also establishes a pilot program for local and regional purchase of commodities for famine prevention. The farm bill also terminates some export programs, while selected others receive increased funding. CBO data show estimated total five-year outlays for this title at nearly $1.9 billion (FY2008-FY2012). For more information, see CRS Report RL33553, Agricultural Export and Food Aid Programs, CRS Report RL34145, International Food Aid and the 2008 Farm Bill, and CRS Report RL34227, Agricultural Exports and the 2008 Farm Bill. Title IV: Nutrition. The 2008 farm bill’s nutrition title accounts for well over half of all spending covered by the bill, with the overwhelming majority financing the Food Stamp program. The most significant issues in this title deal with administration of, eligibility for, and benefits under the Food Stamp program, funding for The Emergency Food Assistance Program (TEFAP), and support for a program making free fresh fruits and vegetables available in schools. The enacted 2008 farm bill includes provisions that extend expiring authorities in covered programs (generally through FY2012) and increase spending for most programs above what would have been expected under prior law (above the “baseline”). CBO data show estimated total five-year outlays for nutrition programs at $188.9 billion (FY2008-FY2012). See CRS Report RL33829, Domestic Food Assistance: The Farm Bill and Other Legislation in the 110th Congress. Title V: Credit. The farm bill enacted relatively minor changes to the permanent statutes for two government-related farm lenders: the USDA Farm Service Agency (FSA) and the Farm Credit System (FCS). CBO estimates these changes will result in total cost savings of about $1.4 billion over the next five years. See CRS Report RS21977, Agricultural Credit: Institutions and Issues. Title VI: Rural Development. The 2008 farm bill reauthorizes and/or amends rural development loan and grant programs and authorizes several new provisions, including rural infrastructure, economic development, and broadband and telecommunications development, among other programs. The bill creates several new programs intended to assist with regional development strategies and to provide technical and financial assistance for rural businesses. CBO data show estimated total five-year outlays for this title at $0.2 billion (FY2008-FY2012). See CRS Report RL34126, Rural Development and the 2008 Farm Bill. Title VII: Research. The 2008 farm bill reorganizes the administration of USDA’s research, extension, and economic agencies to coordinate the mission area’s intramural and extramural activities across the department through a new Research, Extension, and Economics Office (REEO). Intramural research is carried out by the Agricultural Research Service, Economic Research Service, and National Agricultural Statistics Service. Extramural research, both formula-funded and competitively awarded, has been administered through the Cooperative State CRS-5 Research, Education, and Extension Service. As of October 2009, this agency becomes the new National Institute of Food and Agriculture. The bill establishes new and expands existing research initiatives, providing more support with mandatory funds for this mission area. CBO data show estimated five-year outlays for this title at $0.3 billion (FY2008-FY2012). For more information see CRS Report RL34352, Agricultural Research, Extension, and Education: Farm Bill Issues. Title VIII: Forestry. The enacted farm bill makes changes to existing forestry programs, allows one to expire, and creates some new programs to assist local entities to protect forests threatened with conversion to non-forest uses, and to restore forests damaged by natural disaster, among other programs. The bill also establishes priorities for forestry assistance funding, requires statewide forest resource assessments and plans and creates a new coordinating committee to oversee state assistance funding. The bill also amends existing law to restrict imports of illegally logged wood and modifies income tax deductions for qualified timber gains. CBO data show estimated total five-year outlays for this title at less than $40 million (FY2008-FY2012). See also CRS Report RL33917, Forestry in the 2008 Farm Bill. Title IX: Energy. The 2008 farm bill reauthorizes, expands, and/or modifies existing programs, and creates new programs and initiatives to promote biofuels and cellulosic ethanol production. The bill supports farm and community renewable energy systems; promotes production, marketing, and processing of biofuel feedstocks other than corn starch; and expands research, education, and demonstration programs for advanced biofuels. It also expands programs for federal procurement of biofuels and bio-refinery repowering projects and establishes USDA coordination of federal biobased energy efforts. CBO data show estimated total fiveyear outlays at $0.6 billion (FY2008-FY2012). For more information, see CRS Report RL34130, Renewable Energy Policy in the 2008 Farm Bill. Title X: Horticulture and Organic Agriculture. The 2008 farm bill includes new provisions for horticulture and organic production under a new bill title, providing nearly $1 billion in funding over the next ten years. About half of this spending will be used to expand the Specialty Crop Block Grant Program, which provides funds to state agriculture departments for U.S. specialty crop marketing, promotion, research, and other activities. The bill also provides new mandatory funding for growth of farmers’ markets and for transitioning producers to organic production, authorizes funding for a new federal-state cooperative pest and disease early detection program, and provides for price reporting and organic data collection, among other provisions. CBO data show estimated total five-year outlays for this title at $0.4 billion (FY2008-FY2012). See also CRS Report RL33520, Specialty Crops: 2008 Farm Bill Issues. Title XI: Livestock. The 2008 farm bill includes new livestock-related provisions under a new bill title. The bill makes changes to existing laws governing livestock and poultry marketing and competition, including specifying that producers may not be forced into mandatory arbitration in livestock or poultry contracts, allowing producers to decline arbitration prior to entering into the contract, enabling producers to litigate a contract dispute where the principal part of their production occurs, and requiring additional reporting and tracking of enforcement action under the Packers and Stockyards Act. The bill also modifies country-of-origin labeling CRS-6 (COOL) requirements for retailers, opens the way for state-inspected meat and poultry to enter interstate commerce, and extends mandatory safety inspection to catfish. CBO data show total five-year outlays at $1 million (FY2008-FY2012). See CRS Report RL33958, Animal Agriculture: 2008 Farm Bill Issues. Title XII: Crop Insurance and Disaster Assistance Programs. The 2008 farm bill provides for changes to the crop insurance program, along with other disaster assistance provisions, under a new bill title. The enacted bill contains several revisions to the crop insurance program, many of which are designed to reduce program costs. CBO estimates net savings of $3.9 billion over five years (FY2008-FY2012), mostly through changes in the timing of premium receipts from farmers, and payments to the companies. The title also includes other disaster assistance provisions, including the addition of the Small Business Disaster Response and Loan Improvements Act of 2008, which makes significant changes to the Small Business Administration’s (SBA’s) response to disaster. CBO data show estimated total five-year outlays for this title at $21.9 billion (FY2008-FY2012). See CRS Report RL34207, Crop Insurance and Disaster Assistance: 2008 Farm Bill Issues. Title XIII: Commodity Futures. The enacted 2008 farm bill has a new title that reauthorizes appropriations for the Commodity Futures Trading Commission (CFTC) through FY2013, and makes amendments to the Commodity Exchange Act. Title XIV: Miscellaneous. The miscellaneous title in the 2008 farm bill covers various provisions affecting research, energy, and rural development titles, as well as provisions covering socially disadvantaged and limited-resource producers and agricultural security, among other miscellaneous provisions. CBO data show estimated total outlays for provisions in this title at $6.4 billion (FY2008-FY2012). Title XV: Trade and Tax Provisions. The enacted bill contains a new farm bill title that provides for a new permanent Supplemental Agricultural Disaster Assistance program, as well as various trade and tax provisions. The supplemental revenue assistance payment program for crop producers is designed to compensate eligible producers for a portion of crop losses that are not eligible for an indemnity payment under the crop insurance program (i.e., the portion of losses that is part of the deductible on the policy). CBO data show estimated total five-year outlays for the permanent disaster program at $3.8 billion (FY2008-FY2012). See CRS Report RL34207, Crop Insurance and Disaster Assistance in the 2008 Farm Bill. The enacted bill’s tax provisions consist of six groups, respectively containing provisions for revenue, an agriculture disaster reserve fund, conservation, energy, agriculture, and other provisions. The single largest revenue-raising provision involves a change in the estimated tax payment of corporations. The single largest revenue-losing provision in the enacted bill pertains to the agriculture disaster reserve fund, described above. CBO data show these provisions will generate a $10 billion offset over the next ten years.