Order Code RS22131
Updated September 23, 2008
What Is the “Farm Bill”?
Renée Johnson
Specialist in Agricultural Policy
Resources, Science, and Industry DivisionMay 6, 2010
Congressional Research Service
7-5700
www.crs.gov
RS22131
CRS Report for Congress
Prepared for Members and Committees of Congress
What Is the “Farm Bill"?
Summary
The 2008 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 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 also stir fierce competition for available funds.
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 (CBO) estimates the total cost of the 2008 bill (i.e.,
baseline plus new funding, using the March 2007 baseline) at $284 billion over FY2008FY2012 and $604 billion over FY2008-FY2017 (Table 1). These costs are mandatory
outlays that do not require appropriations actions. The farm bill also authorizes
discretionary programs that require appropriators to allocate funds not accounted for here.
Table 1. CBO Estimated Costs for the
2008 Conference Agreement on the 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
Nutrition (Title IV)a
186,005
2,897
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)
—
(4,798)
283,987
(66)
Total
41,628
24,112
1,853
188,902
(1,424)
194
321
38
643
402
1
21,858
0
6,382
3,807
(4,798)
283,921
FY2008-FY2017
Baseline CBO Score
(change)
87,179
(1,658)
50,699
4,000
3,715
(78)
397,131
9,218
(2,321)
(306)
72
149
1,290
(907)
0
45
43
836
—
938
—
1
52,743
(5,591)
—
0
13,668
(138)
—
3,807
—
(10,429)
604,218
(107)
Total
85,521
54,699
3,637
406,349
(2,627)
221
383
45
879
938
1
47,152
0
13,530
3,807
(10,429)
604,111
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; also Senate Finance Committee,
Estimated Revenue Effects of the Conference Agreement for Title XV of H.R. 2419, Fiscal Years 2008-2018, 08-2 068 R10
(Preliminary), May 13, 2008. May not add due to rounding.
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 $284 billion in projected total five-year net outlays for programs under
the farm bill — including revenue and cost-offset provisions in the bill — about $42
(14%) in projected spending will support commodity crops, $189 billion (67%) will
support the cost of domestic nutrition programs, $24 billion (9%) will support
conservation programs, and $22 billion (8%) will support crop insurance. For
FY2008-FY2012, the enacted bill also includes nearly $4 billion in new spending for
supplemental disaster assistance (included under Title XV). Another $10 billion is
CRS-3
expected to be spent on trade, horticulture and livestock production, rural
development, research, forestry and energy, and other programs. Tax-related
provisions and cost savings from some farm bill programs are expected to generate
additional funding to offset any new spending. CBO estimates that offsets in the bill
total more than $10 billion over five years (FY2008-FY2012).
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 Program, 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
CRS-4
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 outlays at $24.1 billion (FY2008FY2012). See CRS Report RL34060, Conservation and the 2008 Farm Bill.
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). See also 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 Provisions of 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,
CRS-5
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
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,
CRS-6
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
(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. and is to guide most federal farm and food policies through FY2012.
The farm bill undergoes review and reauthorization roughly every five years. The 112th Congress
likely will consider reauthorization of the 2008 farm bill, because much of the current law expires
in 2012. Increasingly tight budgetary resources are prompting the chairman of the House
Agriculture Committee to initiate hearings starting as early as spring 2010. The Administration
already has submitted budget proposals to reduce farm supports, an approach at odds with that of
many farm sector advocates, who support the status quo.
Congressional Research Service
What Is the “Farm Bill"?
Contents
What Is the “Farm Bill”?.............................................................................................................1
What Is the Cost?........................................................................................................................1
What Are the Key Farm Bill Provisions by Title? ........................................................................3
Title I: Commodity Programs ................................................................................................3
Title II: Conservation ............................................................................................................3
Title III: Trade.......................................................................................................................4
Title IV: Nutrition .................................................................................................................4
Title V: Credit .......................................................................................................................4
Title VI: Rural Development .................................................................................................4
Title VII: Research................................................................................................................5
Title VIII: Forestry................................................................................................................5
Title IX: Energy ....................................................................................................................5
Title X: Horticulture and Organic Agriculture........................................................................5
Title XI: Livestock ................................................................................................................6
Title XII: Crop Insurance and Disaster Assistance Programs..................................................6
Title XIII: Commodity Futures..............................................................................................6
Title XIV: Miscellaneous.......................................................................................................6
Title XV: Trade and Tax Provisions .......................................................................................6
Tables
Table 1. CBO-Estimated 5-Year and 10-Year Costs, 2008 Conference Agreement on the
Farm Bill (P.L. 110-246) ..........................................................................................................2
Contacts
Author Contact Information ........................................................................................................7
Congressional Research Service
What Is the “Farm Bill"?
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 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 also stir fierce competition for available funds.
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 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 RL34696, The 2008 Farm Bill: Major Provisions and Legislative Action.
What Is the Cost?
When the 2008 farm bill was enacted, the Congressional Budget Office (CBO) estimated the total
cost of the farm bill (i.e., baseline plus new funding, using the March 2007 baseline) at $284
billion over 5 years (FY2008-FY2012) and $604 billion over 10 years (FY2008-FY2017). These
costs reflected mandatory outlays that do not require appropriations actions. Table 1 provides a
title-by-title breakdown of the 2008 CBO spending estimates for the enacted 2008 farm bill,
covering both FY2008-FY2012 and FY2008-FY2017. The farm bill also authorized discretionary
programs that require appropriators to provide funds and thus are not reflected in the table.
The overwhelming share (97%) of estimated total net outlays for programs in the 2008 farm bill
was anticipated to be spent on four titles: nutrition (67%), farm commodity support (15%),
conservation (9%), and crop insurance (8%). Of the $284 billion in projected total five-year net
outlays for programs under the farm bill—including revenue and cost-offset provisions in the
bill—about $189 billion was expected to support the cost of food stamps and certain other
nutrition assistance programs, $42 billion in projected spending was to support commodity crops,
$24 billion to support mandatory conservation programs, and $22 billion to support crop
insurance. For FY2008-FY2012, the 2008 farm bill also included nearly $4 billion in new
spending for supplemental farm disaster assistance (included under Title XV). Another $10
billion was expected to be spent on trade, horticulture and livestock production, rural
development, research, forestry, and energy, among other programs.
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).
Congressional Research Service
1
What Is the “Farm Bill"?
Table 1. CBO-Estimated 5-Year and 10-Year Costs,
2008 Conference Agreement on the Farm Bill (P.L. 110-246)
(outlays in millions of dollars)
FY2008-FY2012
Baseline
CBO Score
(change)
Commodities (Title I)
43,354
(1,726)
Conservation (Title II)
21,392
FY2008-FY2017
Baseline
CBO Score
(change)
41,628
87,179
(1,658)
85,521
2,720
24,112
50,699
4,000
54,699
1,823
30
1,853
3,715
(78)
3,637
186,005
2,897
188,902
397,131
9,218
406,349
(1,046)
(378)
(1,424)
(2,321)
(306)
(2,627)
72
122
194
72
149
221
Research (Title VII)
290
31
321
1,290
(907)
383
Forestry (Title VIII)
0
38
38
0
45
45
41
602
643
43
836
879
Horticulture/Organic (Title X)
0
402
402
0
938
938
Livestock (Title XI)
0
1
1
0
1
1
25,718
(3,860)
21,858
52,743
(5,591)
47,152
0
0
0
0
0
0
6,338
44
6,382
13,668
(138)
13,530
Disaster Assistance (Title XV)
0
3,807
3,807
0
3,807
3,807
Tax/Other (Title XV)
0
(4,798)
(4,798)
0
(10,429)
(10,429)
283,987
(66)
283,921
604,218
(107)
604,111
Trade/Food Aid (Title III)
Nutrition (Title
IV)a
Credit (Title V)
Rural Development (Title VI)
Energy (Title IX)
Crop Insurance (Title XII)
Commodity Futures (Title XIII)
Miscellaneous (Title
XIV)b
Total
Total
Total
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; also Senate
Finance Committee, Estimated Revenue Effects of the Conference Agreement for Title XV of H.R. 2419, Fiscal Years
2008-2018, 08-2 068 R10, May 13, 2008. May not add due to rounding. Numbers in parentheses are savings.
Notes: “Baseline” is the projection of government costs if programs were to continue unchanged. The baseline
in this table is the 2007 CBO baseline assuming 2002 farm bill programs were to continue, as the 2008 bill was
being drafted. “CBO score” is the cost (or savings) attributable to the 2008 farm bill, using the 2007 baseline as a
benchmark. Thus, the “total” in this table is the projected cost of the 2008 farm bill, equal to baseline plus the
changes made by the 2008 farm bill.
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 previously included as part of the 2002 farm bill’s miscellaneous
provisions. Other provisions in the 2008 farm bill include those for socially disadvantaged and limited
resource producers, and for agricultural security, among others.
Similar to the conditions during debate on the 2008 farm bill, the upcoming farm bill debate is
likely to be driven in part by relatively large budget deficits and growing demands for fiscal
constraint. For updated information on recent actual farm bill spending and implications for
reauthorizing a new farm bill, see CRS Report R41195, Actual Farm Bill Spending and Cost
Estimates.
Congressional Research Service
2
What Is the “Farm Bill"?
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 RL34696, The 2008 Farm Bill: Major Provisions and
Legislative Action.
Title I: Commodity Programs
For the major commodity crops—grains, oilseeds, and cotton—the 2008 farm bill generally
continued the farm commodity price and income support framework of the 2002 farm bill. It
revised payment limitations by tightening some annual limits and relaxing others, and adjusted
target prices and loan rates for some commodities. It continued the direct payment, countercyclical payment, and marketing loan programs for the 2008-2012 crop years. The bill created a
pilot revenue-based counter-cyclical program—the Average Crop Revenue Election (ACRE)
program—beginning with the 2009 crop year. It also included a pilot program for planting
flexibility, restricted base acres developed for residential use, and eliminated benefits to farms
with less than 10 acres.
For dairy, the 2008 farm bill extended, 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 authorized farmers to voluntarily enter into
forward price contracts as part of the federal milk marketing order program, among other dairyrelated provisions. The bill also continued 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 2008 farm bill mandated an 85% market
share for U.S. sugar producers and created a sugar-for-ethanol program to sell surplus sugar to
ethanol producers. Across all commodities, when the 2008 farm bill was enacted, CBO estimated
that five-year outlays for the title would total $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 reauthorized almost all 2002 farm bill conservation programs, modified
several programs, and created several new conservation programs. The bill made changes to
and/or expanded both working lands programs, such as the Environmental Quality Incentives
Program and the (renamed) Conservation Stewardship Program, and land retirement programs,
such as the Conservation Reserve Program and the Farmland Protection Program. Program
changes addressed 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 was also expanded to include
beginning, limited-resource, and socially disadvantaged producers; specialty crop producers; and
producers transitioning to organic production. The bill also created new conservation programs to
address emerging issues and priority resource areas, and also new subprograms under existing
programs. When the 2008 farm bill was enacted, CBO estimated that five-year outlays for the
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title would total $24.1 billion (FY2008-FY2012). See CRS Report RL34557, Conservation
Provisions of the 2008 Farm Bill.
Title III: Trade
The 2008 farm bill reauthorized and amended USDA’s food aid, export market development, and
export credit guarantee programs. The bill reauthorized 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
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 established a pilot program for local and regional purchase of
commodities for famine prevention. The farm bill terminated some export programs, while
selected others received increased funding. When the 2008 farm bill was enacted, CBO estimated
that outlays for the title would total nearly $1.9 billion (FY2008-FY2012). See CRS Report
RS22905, Agricultural Export Provisions of the 2008 Farm Bill, and CRS Report RS22900,
International Food Aid Provisions of the 2008 Farm Bill.
Title IV: Nutrition
The 2008 farm bill’s nutrition title accounted 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 addressed 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 bill extended expiring
authorities in covered programs (generally through FY2012) and increased spending for most
programs. When the 2008 farm bill was enacted, CBO estimated that five-year outlays for the
title would total $188.9 billion (FY2008-FY2012). See CRS Report RL33829, Domestic Food
Assistance and the 2008 Farm Bill.
Title V: Credit
The 2008 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). When the 2008 farm bill was enacted, CBO estimated that these changes would
result in total cost savings over five years of about $1.4 billion (FY2008-FY2012). See CRS
Report RS21977, Agricultural Credit: Institutions and Issues.
Title VI: Rural Development
The 2008 farm bill reauthorized and/or amended rural development loan and grant programs and
authorized several new provisions, including rural infrastructure, economic development, and
broadband and telecommunications development, among other programs. The bill created several
new programs intended to assist with regional development strategies and provided technical and
financial assistance for rural businesses. When the 2008 farm bill was enacted, CBO estimated
that outlays for the title would total $0.2 billion (FY2008-FY2012). See CRS Report RL34126,
Rural Development Provisions of the 2008 Farm Bill.
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Title VII: Research
The 2008 farm bill reorganized the administration of USDA’s research, extension, and economic
agencies within the mission area. The farm bill created a new entity called the National Institute
of Food and Agriculture (NIFA) to carry out extramural research, including both formula-funded
and competitively awarded programs. NIFA replaced the Cooperative State, Education, and
Extension Service (CSREES), which prior to the 2008 farm bill was the primary USDA
extramural funding agency. Intramural research continues to be carried out by the Agricultural
Research Service (ARS), Economic Research Service (ERS), and National Agricultural Statistics
Service (NASS). The 2008 farm bill established a new competitive research program, the
Agriculture and Food Research Initiative (AFRI), and expanded mandatory funding for this
mission area. When the 2008 farm bill was enacted, CBO estimated that outlays for the title
would total $0.3 billion (FY2008-FY2012). For more information, see CRS Report R40819,
Agricultural Research, Education, and Extension: Issues and Background.
Title VIII: Forestry
The 2008 farm bill made changes to existing forestry programs, allowed one to expire, and
created some new programs to assist local entities in protecting forests threatened with
conversion to non-forest uses, and to restore forests damaged by natural disaster, among other
programs. The bill also established priorities for forestry assistance funding, required statewide
forest resource assessments, and created a new coordinating committee to oversee state assistance
funding. The bill amended existing law to restrict imports of illegally logged wood and modified
income tax deductions for qualified timber gains. When the 2008 farm bill was enacted, CBO
estimated that outlays for the title would total $40 million (FY2008-FY2012). For more
information, CRS Report RL33917, Forestry in the 2008 Farm Bill.
Title IX: Energy
The 2008 farm bill reauthorized, expanded, and/or modified existing programs, and created new
programs and initiatives to promote biofuels and cellulosic ethanol production. The bill included
provisions supporting farm and community renewable energy systems, including the production,
marketing, and processing of biofuel feedstocks other than corn starch. It expanded research,
education, and demonstration programs for advanced biofuels, and also established USDA
coordination of federal biobased energy efforts. The bill also expanded federal procurement of
biofuels and bio-refinery repowering projects. When the 2008 farm bill was enacted, CBO
estimated that outlays for the title would total $0.6 billion (FY2008-FY2012). For more
information, see CRS Report RL34130, Renewable Energy Programs in the 2008 Farm Bill.
Title X: Horticulture and Organic Agriculture
The 2008 farm bill included new programs and increased spending for horticulture and organic
production under a new bill title. About half of this increased spending was targeted 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 provided
new mandatory funding for growth of farmers’ markets and for transitioning producers to organic
production. It also authorized funding for a new federal-state cooperative pest and disease early
detection program, and provided for price reporting and organic data collection, among other
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provisions. When the 2008 farm bill was enacted, CBO estimated that outlays would total $0.4
billion (FY2008-FY2012). See CRS Report RL33520, Specialty Crops: 2008 Farm Bill Issues.
Title XI: Livestock
The 2008 farm bill included new livestock-related provisions under a new bill title. The bill made
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 modified country-of-origin labeling (COOL) requirements for retailers,
opened the way for state-inspected meat and poultry to enter interstate commerce, and extended
mandatory safety inspection to catfish. When the 2008 farm bill was enacted, CBO estimated that
outlays for the title would total $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 provided for changes to the crop insurance program, along with other disaster
assistance provisions, under a new bill title. The bill contained several revisions to the crop
insurance program, many of which were designed to reduce program costs. When the 2008 farm
bill was enacted, CBO estimated 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 included 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 had
estimated that five-year outlays for the title would total $21.9 billion (FY2008-FY2012). See
CRS Report RL34207, Crop Insurance and Disaster Assistance in the 2008 Farm Bill.
Title XIII: Commodity Futures
The 2008 farm bill included a title that reauthorized appropriations for the Commodity Futures
Trading Commission (CFTC) through FY2013, also amending the Commodity Exchange Act.
Title XIV: Miscellaneous
The miscellaneous title in the 2008 farm bill included various provisions affecting research,
energy, and rural development, as well as provisions covering socially disadvantaged and limitedresource producers and agricultural security, among other provisions. When the 2008 farm bill
was enacted, CBO estimated that outlays for the title would total $6.4 billion (FY2008-FY2012).
Title XV: Trade and Tax Provisions
The 2008 farm bill included a title containing various trade and tax provisions. This title also
included provisions creating a new permanent Supplemental Agricultural Disaster Assistance
program. The supplemental revenue assistance payment program for crop producers is designed
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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). When the 2008 farm bill was enacted, CBO estimated that outlays for the
permanent disaster program would total $3.8 billion (FY2008-FY2012). See CRS Report
RL34207, Crop Insurance and Disaster Assistance in the 2008 Farm Bill.
The bill’s tax provisions addressed a range of conservation, energy, and agriculture issues, among
others. The single largest revenue-raising provision involved a change in the estimated tax
payment of corporations. When the 2008 farm bill was enacted, CBO estimated that these
provisions would generate a $10 billion offset over 10 years (FY2008-FY2017).
Author Contact Information
Renée Johnson
Specialist in Agricultural Policy
rjohnson@crs.loc.gov, 7-9588
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