What Is the Farm Bill?
Renée Johnson
Specialist in Agricultural Policy
Jim Monke
Specialist in Agricultural Policy
October 3, 2012June 21, 2013
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 farm bill is an omnibus, multi-year piece of authorizing legislation that governs an array of
agricultural and food programs. Although agricultural policies sometimes are created and changed
by freestanding legislation or as part of other major laws, the farm bill provides a predictable
opportunity for policymakers to comprehensively and periodically address agricultural and food
issues. The farm bill is renewed about every five years.
The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, “2008 farm bill”) is the most
recent omnibus farm bill, and was enacted into law in June 2008. The farm bill is due for
reauthorization, as portions of the 2008 farm bill expired beginning September 30, 2012. Some
programs expire at the end of a farm bill and would cease to operate altogether unless
reauthorized; in other cases new activities might not be initiated—either for lack of program
authority or available funding.
The 112thin 2012. The farm bill was extended,
however, for an additional year in the American Taxpayer Relief Act of 2012 (P.L. 112-240, the
“fiscal cliff” bill). The 112th Congress began work on a new farm bill in 2012 but did not
complete action before the conclusion of the Congress, requiring new bills to be introduced in the
113th Congress.
The 113th Congress has considered several options to address reauthorization of the farm bill. The
Senate approved its version of a farm bill (S. 3240) in June 2012. In the House, a farm bill (H.R.
6083) was approved by the House Agriculture Committee in July 2012 and awaits consideration
by the full House of Representatives. Congress also considered various options for extending the
current farm bill, among other options.
The most recent Congressional Budget Office (CBO) “baseline” budget (Mach 2012) estimates
that about $993
Both the Senate and House Agriculture Committees began work on their respective versions of
the 2013 omnibus farm bill in mid-May 2013. On May 14, 2013, the Senate Agriculture
Committee reported its version of the bill (S. 954, the Agriculture Reform, Food and Jobs Act of
2013), which was approved by the full Senate on June 10, 2013 (vote of 66-27). On May 15,
2013, the House Agriculture Committee completed markup of its version of the bill (H.R. 1947,
the Federal Agriculture Reform and Risk Management Act of 2013) and floor action on the bill
began in mid-June. However, on June 20, the full House voted to reject the bill (vote of 195-234).
The most recent Congressional Budget Office (CBO) “baseline” budget (May 2013) estimates
that about $973 billion of mandatory outlays are available for farm bill programs over the next
decade (FY2013-FY2022). Within this total, an estimated $772 billion (78%) would be available
for the Supplemental FY2014-FY2023). This baseline reflects a reduction of $6.4 billion over the 10-year
baseline because of the effects of sequestration as ordered under the Budget Control Act of 2011.
Within this total, an estimated $764 billion (79%) would be available for the Supplemental
Nutrition Assistance Program (SNAP, formerly known as food stamps) as
part of the bill’s
nutrition title. Another $154143 billion (1615%) would be available for farm
commodity support and
crop insurance, and $6462 billion (6%) for agricultural conservation.
Congressional Research Service
What Is the Farm Bill?
Contents
What Is the Farm Bill? ..................................................................................................................... 1
What Is the Cost? ............................................................................................................................. 3
2008 Farm Bill at Enactment ..................................................................................................... 3
20122013 House and Senate Farm Bill Proposals............................................................................. 34
What Are the Key Issues? ................................................................................................................ 56
Deficit Reduction and the Budget ............................................................................................. 56
Nutrition Assistance................................................................................................................... 57
Farm Commodity Policy Reform .............................................................................................. 6
Disaster Assistance .........7
The Rest of the Farm Bill ........................................................................................................... 7
The Rest of the Farm Bill ............. 8
Figures
Figure 1. Ten-Year Mandatory Baseline for Farm Bill Titles ............................................................................................. 7
Figures
Figure 1. March 2012 CBO Baseline of Mandatory Outlays for Farm Bill Titles 5
Figure 2. Ten-Year Scores of the Senate and House 2013 Farm Bills ............................................. 46
Tables
Table 1. 20122013 Farm Bill Budget: Baseline, Scores, and Proposed Outlays, by Title ....................... 45
Contacts
Author Contact Information............................................................................................................. 78
Congressional Research Service
What Is the Farm Bill?
What Is the Farm Bill?
The farm bill is an omnibus, multi-year piece of authorizing legislation that governs an array of
agricultural and food programs. Although agricultural policies sometimes are created and changed
by freestanding legislation or as part of other major laws, the farm bill provides a predictable
opportunity for policymakers to comprehensively and periodically address agricultural and food
issues. The farm bill is renewed about every five years.1
Since the 1930s, farm bills traditionally have focused on farm commodity price and income
support for a handful of staple commodities—corn, soybeans, wheat, cotton, rice, and dairy. Yet
farm bills have grown in breadth in recent decades. Among the most important additions have
been nutrition assistance, conservation, horticulture, and bioenergy programs.
The omnibus
nature of the farm bill can create broad coalitions of support among sometimes conflicting
conflicting interests for policies that individually might not survive the legislative process. This also
can stir
fierce competition for funds. In recent years, more parties have become involved in the farm bill
debate, including national farm groups, commodity associations, state organizations, and nutrition
and public health officials, as well as advocacy groups representing conservation, recreation, rural
development, faith-based interests, local food systems, and certified organic production.
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 in June 2008 and succeeded the 2002 farm bill. The 2008
farm bill contained 15 titles encompassing commodity price and income supports, farm credit,
trade, agricultural conservation, research, rural development, energy, and foreign and domestic
food programs, among other programs.2 (See titles described in text box below.)
Without a new farm bill or an extension, some programs expire at the end of a farm bill and will
cease to operate altogether unless reauthorized; in addition, new activities might not be
initiated—either for lack of program authority or available funding. Nutrition assistance programs
need reauthorization, if they are to continue. The farm commodity programs not only expire, but
would revert to permanent law dating back to the 1940s. Many discretionary programs would not
have statutory authority to receive appropriations in future years. Other farm bill programs have
permanent authority and do not need to be reauthorized. Nonetheless, they may be included in a
farm bill to make changes for policy or budgetary goals. Crop insurance is the major example of a
permanently authorized program that is still addressed in the farm bill.
Currently, the farm bill is due for reauthorization, as portions of the 2008 farm bill expired
beginning September 30, 2012.3 The 112th Congress has considered several options to address
reauthorization of the farm bill. In the House, a farm bill (H.R. 6083) was approved by the House
Agriculture Committee in July 2012 and awaits consideration by the full House of
Representatives.4 Congress also considered various options for extending the current farm bill,
among other options.
1
Many provisions of the 2008 farm bill expired in 2012, but were extended for an additional year
in the American Taxpayer Relief Act of 2012 (P.L. 112-240, the fiscal cliff bill). However, the
one-year extension of the 2008 farm bill did not provide any additional mandatory funding for 37
programs in the 2008 farm bill without baseline.3
Without a new farm bill or an extension, the authority for some programs will expire on
September 30, 2013. These programs may cease to operate altogether unless reauthorized, or new
activities under some old programs might not be initiated—either for lack of program authority or
available funding. Nutrition assistance programs need reauthorization, if they are to continue. The
farm commodity programs not only expire, but would revert to permanent law dating back to the
1940s. Many discretionary programs would not have statutory authority to receive appropriations
in future years.4
Other programs have permanent authority and do not need to be reauthorized. Nonetheless, they
may be included in a farm bill to make changes for policy or budgetary goals. Crop insurance is
the primary example of a permanently authorized program addressed in the farm bill.
1
There have been sixteen farm bills since the 1930s (2008, 2002, 1996, 1990, 1985, 1981, 1977, 1973, 1970, 1965,
1956, 1954, 1949, 1948, 1938, and 1933). Farm bills have become increasingly omnibus in nature since 1973 with the
inclusion of a nutrition title.
2
For more information, see CRS Report RL34696, The 2008 Farm Bill: Major Provisions and Legislative Actionhttp://www.crs.gov/pages/
Reports.aspx?PRODCODE=RL34696.
3
CRS Report R42442, Possible Extension or Expiration of the 2008 Farm Bill, andAction.
3
For more information, see CRS Report R41433, Expiring
Farm Bill Programs Without a Budget Baseline.
4
CRS Report R42552, The 2012 Farm Bill: A Comparison of Senate-Passed S. 3240 and the House Agriculture
(continued...)For more information, see CRS Report R42442, Expiration and Extension of the 2008 Farm Bill.
Congressional Research Service
1
What Is the Farm Bill?
The 2008 Farm Bill (P.L. 110-246): Functions and Major Issues, by Title
•
Title I, Commodity Programs: Provided income or other types of support (“safety net”) to farmers that
grow the major commodity crops—wheat, corn, soybeans, cotton, and rice. Included programs to help farmers
manage production risks, including volatile weather, natural disasters, as well as market fluctuations. Support to
farmers was largely through direct payments, counter-cyclical payments, and marketing loans. Other support
mechanisms included government purchases for dairy, and marketing quotas and import barriers for sugar.
•
Title II, Conservation: Encouraged environmental stewardship of farmlands and improved management
practices through a range of land retirement and/or working lands programs, among other programs geared to
farmland conservation, preservation, and resource protection. Working lands programs include: Environmental
Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP). Land retirement programs
included: Conservation Reserve Program (CRP) and the Wetlands Reserve Program (WRP), among others.
•
Title III, Trade: Provided support for U.S. agricultural export programs and international food assistance
programs. Major programs included: Market Access Program (MAP) and the primary U.S. food aid program, the
P.L. 480 program, and other programs. Additionally, addressed program changes related to World Trade
Organization (WTO) obligations.
•
Title IV, Nutrition: Provided nutrition assistance for households and individuals through programs such as the
Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) and The Emergency Food
Assistance Program (TEFAP), among other types of supplemental nutrition assistance. Additionally, provided
support for a program making fresh fruits and vegetables available in schools, and other types of support for
child child
nutrition programs.
•
Title V, Credit: Provided support for federal direct and guaranteed loans to farmers and ranchers, and loan
eligibility rules and policies.
•
Title VI, Rural Development: Supported business and community programs for planning, feasibility
assessments, and coordination activities with other local, state, and federal programs. Programs include rural
development loan and grant programs and authorized several new provisions, rural infrastructure, economic
development, and broadband and telecommunications development, among other programs.
•
Title VII, Research, Extension, and Related Matters: Supported agricultural research and extension
programs that help farmers and ranchers become more efficient, innovative, and productive. Other types of
research programs included biosecurity and response, biotechnology, and organic production.
•
Title VIII, Forestry: Supported forestry management programs run by the U.S. Forest Service.
•
Title IX, Energy: Supported the development of farm and community renewable energy systems through
various programs, grants, and procurement assistance initiatives. Provisions covered the production, marketing,
and processing of biofuel feedstocks; expanded research, education, and demonstration programs for advanced
biofuels; USDA coordination of federal biobased energy efforts; grants for procurement of biobased products to
support development of biorefineries; assistance for eligible farmers, ranchers, and rural small businesses in
purchasing renewable energy systems; and user education programs, among other programs.
•
Title X, Horticulture: Supported the production of specialty crops—fruits, vegetables, tree nuts, and
floriculture and ornamental products—through a range of initiatives, including market promotion; plant pest and
disease prevention; and public research; among other initiatives. Additionally, provided assistance to certified
organic agricultural production.
•
Title XI, Livestock: Addressed a range of programs affecting livestock or poultry producers.
•
Title XII, Crop Insurance and Disaster Assistance: Provided forAmended federal crop insurance and disaster
provided for
disaster assistance, including policies for crop insurance coverage and risk management.
•
Title XIIXIII, Miscellaneous: Other types of programs and assistance not covered in other bill titles, including
provisions to assist limited-resource and socially disadvantaged farmers, and agricultural security, among others.
(...continued)
Committee’s H.R. 6083 with Current Law.
Congressional Research Service
2
What Is the Farm Bill?Congressional Research Service
2
What Is the Farm Bill?
The 112th Congress began work on a new farm bill but did not complete action before the
conclusion of the Congress,5 requiring new bills to be introduced in the 113th Congress.
In the 113th Congress, both the Senate and House Agriculture Committees began work on their
respective versions of the 2013 omnibus farm bill in mid-May 2013. On May 14, 2013, the
Senate Agriculture Committee reported its version of the bill (S. 954, the Agriculture Reform,
Food and Jobs Act of 2013), which was approved by the full Senate on June 10, 2013 (vote of 6627). On May 15, 2013, the House Agriculture Committee completed markup of its version of the
bill (H.R. 1947, the Federal Agriculture Reform and Risk Management Act of 2013) and floor
action on the bill began in mid-June. However, on June 20, the full House voted to reject the bill
(vote of 195-234).
For more detailed information on the provisions in the Senate-passed and House-reported bills,
see CRS Report R43076, The 2013 Farm Bill: A Comparison of the Senate-Passed Bill (S. 954)
and House-Reported Bill (H.R. 1947) with Current Law.
What Is the Cost?
The farm bill sets the policies for an array of agricultural programs. Legislatively, the farm bill
authorizes programs in two spending categories: mandatory and discretionary. Mandatory
programs generally operate as entitlements; the farm bill pays for them based on multi-year
budget estimates when the law is enacted via the Congressional Budget Office (CBO) “baseline.”
Discretionary programs are authorized in the farm bill for their scope; they are not funded in the
farm bill, but instead are subject to annual appropriations. While both types of programs are seen
as important, mandatory programs and related budget issues often dominate the farm bill debate.
2008 Farm Bill at Enactment
When the 2008 farm bill was enacted, CBO estimated the total cost of mandatory programs at
$284 billion over five years (FY2008-FY2012) and $604 billion over 10 years (FY2008FY2017). 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, farm commodity support, crop
insurance, and conservation. Of the $284 billion in projected total five-year net outlays for
programs under the farm bill, about $189 billion (67%) was for the Supplemental Nutrition
Assistance Program (SNAP, formerly known as food stamps) and certain other nutrition
assistance programs. An estimated $42 billion (15%) was expected for farm commodity support
and $22 billion (8%) for crop insurance.56 An estimated $24 billion (9%) was expected to support
mandatory conservation programs. Another $10 billion was expected to be spent on trade,
horticulture and livestock production, rural development, research, forestry, and energy, among
other programs.67 Actual spending for these programs differed from these original estimates.7
20128
5
In the 112th Congress, the Senate approved its version of a farm bill (S. 3240) in June 2012. In the House, a farm bill
(H.R. 6083) was approved by the House Agriculture Committee in July 2012, but was not taken up by the full House of
Representatives.
6
Another $4 billion was allocated for supplemental farm disaster assistance (FY2008-2012) in the miscellaneous title.
7
CRS Report RL34696, The 2008 Farm Bill: Major Provisions and Legislative Action.
8
CBO periodically re-estimates the baseline. New estimates show how changing economic conditions affect automatic
entitlement outlays under current law. Increases in projected costs from prior year baselines may indicate that more
(continued...)
Congressional Research Service
3
What Is the Farm Bill?
2013 House and Senate Farm Bill Proposals
If current law were continued, CBO estimates that mandatory outlays would be $993 billion over
10 years (FY2013-FY2022, Table 1).973 billion for
the 10-year period FY2014-FY2023 (Table 1).9 This “baseline” serves as a starting point for how
much is
available to spend on the next farm bill.8 Within this total, an estimated $772 billion (78%) would
be available for SNAP (Figure 1). Another $154 billion (16%) would be available for farm
commodities and crop insurance, and $64 billion (6%) for conservation. The remaining roughly
$3 billion (less than one-half of 1%) would be available for the other farm bill titles (trade,
horticulture, energy, rural development, research and forestry). These costs reflect mandatory
outlays, and do not reflect discretionary spending for programs authorized in the farm bill and
paid for separately in annual appropriations bills. Table 1 also reflects estimates for the House
committee and Senate farm bill proposals in 2012, which could reduce farm bill spending by
3.5% and 2.3%, respectively, as discussed in the next section.
5
Another $4 billion was allocated for supplemental farm disaster assistance (FY2008-2012) in the miscellaneous title.
CRS Report RL34696, The 2008 Farm Bill: Major Provisions and Legislative Action.
7
CBO periodically re-estimates the baseline. New estimates show how changing economic conditions affect automatic
entitlement outlays under current law. Increases in projected costs from prior year baselines may indicate that more10 This baseline reflects a reduction of $6.4
billion over the 10-year baseline because of the effects of sequestration as ordered under the
Budget Control Act of 2011.11 These costs reflect mandatory outlays only, and do not reflect
discretionary spending for programs authorized in the farm bill and paid for separately in annual
appropriations bills.
Most of the $973 billion post-sequestration baseline is for domestic nutrition assistance programs
($764 billion, or 79%), primarily the Supplemental Nutrition Assistance Program, or SNAP
(Figure 1).12 The rest, about $208 billion, is divided among various agriculture-related programs,
primarily crop insurance ($84 billion, or 8.6%), farm commodity price and income supports ($59
billion, or 6.0%), and conservation ($62 billion, or 6.3%). Less than 1% of the baseline is for
mandatory spending on international trade ($3.4 billion), horticulture programs ($1.1 billion), and
the miscellaneous title ($1.4 billion for the Noninsured Assistance Program, NAP).
Compared to the CBO May 2013 baseline for mandatory farm bill spending of $973 billion, the
Senate-passed farm bill would reduce spending by $17.9 billion (-1.8%) over 10 years (Figure
2).13 The House Committee-reported bill would reduce spending by $33.4 billion (-3.4%) over 10
years.14 Even though the farm bills would expire after 5 years, budget rules require bills to be
evaluated over 10 years.
For more detailed information pertaining to specific estimated costs in the Senate-passed and
House-reported bills, see CRS Report R42484, Budget Issues Shaping a Farm Bill in 2013.
(...continued)
people qualify for benefits, but the increase does not require budgetary offsets. Likewise, reductions in projected costs
may indicate that less price supportspending is needed, but reductions do not create savings that could offset new spending. For
more information, see CRS Report R41195, Actual Farm Bill Spending and Cost Estimates.
8
CRS Report R42484, Budget Issues Shaping a 2012 Farm Bill
6
Congressional Research Service
3
What Is the Farm Bill?
Table 1. 2012 Farm Bill Budget: Baseline, Scores, and Proposed Outlays, by Title
(outlays in millions of dollars, 10-year total FY2013-FY2022)
2012 Farm Bill Titles
CBO Score of Bill
(change to baseline)
Outlays Proposed
(Baseline + Score)
CBO
Baseline
(outlays)
S. 3240
H.R. 6083
S. 3240
H.R. 6083
I
Commodities
62,944
-19,428
-23,584
43,516
39,360
II
Conservation
64,067
-6,374
-6,148
57,693
57,919
III
Trade
3,442
0
0
3,442
3,442
IV
Nutrition
772,109
-4,000
-16,075
768,109
756,034
V
Credit
-2,665
0
0
-2,665
-2,665
VI
Rural Development
25
+115
+105
140
130
VII
Research
214
+681
+546
895
760
VIII
Forestry
9
+9
+4
18
13
IX
Energy
750
+780
0
1,530
750
X
Horticulture
1,080
+360
+435
1,440
1,515
XI
Crop Insurance
90,867
+5,036
+9,523
95,903
100,390
XII
Miscellaneous
0
-319
+50
-319
50
992,842
-23,140
-35,144
969,702
957,698
Total
Source: CRS Report R42484, Budget Issues Shaping a 2012 Farm Bill, using the CBO baseline (March 2012) and
CBO cost estimates of Senate-passed S. 3240 (July 9, 2012), and House-drafted H.R. 6083 (July 26, 2012),
Figure 1. March 2012 CBO Baseline of Mandatory Outlays for Farm Bill Titles
(10-year budget outlays FY2013-FY2022 in billions of dollars by farm bill title)
10-yr baseline: $993 billion over FY2013-22
Crop Insurance,
91
Commodities,
63
Conservation,
64
Nutrition,
772
Trade, 3.442
Horticulture,
1.080
Energy, 0.750
Rural Dev., 0.025
Research, 0.214
Forestry, 0.009
Source: CRS, using the March 2012 CBO baseline.
Congressional Research Service
4
What Is the Farm Bill?9
CBO, “May 2013 Baseline for the 2008 Farm Bill Programs and Provisions, by Title,” unpublished, May 2013. See
also “Updated Budget Projections: Fiscal Years 2013 to 2023,” May 14, 2013, at http://cbo.gov/publication/44172.
10
For more information, see CRS Report R42484, Budget Issues Shaping a Farm Bill in 2013
11
The effect of sequestration on the baseline is explained in the initial CBO estimates of the farm bill drafts prior to
markup for the Senate farm bill (p. 2 and Table 4, at http://cbo.gov/publication/44175, May 13, 2013) and the House
bill (p. 2 and Table 4, at http://cbo.gov/publication/44177, May 13, 2013).
12
The farm bill baseline includes SNAP but not child nutrition programs (e.g., school lunch) due to jurisdictional
differences. For more information, see CRS Report R42484, Budget Issues Shaping a Farm Bill in 2013.
13
CBO cost estimate of S. 954 as reported by the Senate Agriculture committee (http://cbo.gov/publication/44248, May
17, 2013). Amendments adopted by the Senate are not believed to have affected the score of mandatory outlays from
the Senate-reported version.
14
CBO cost estimate of H.R. 1947 as reported by the House Agriculture committee (http://cbo.gov/publication/44271,
May 23, 2013).
Congressional Research Service
4
What Is the Farm Bill?
Table 1. 2013 Farm Bill Budget: Baseline, Scores, and Proposed Outlays, by Title
(outlays in millions of dollars, 10-year total FY2014-FY2023)
CBO Score of Bill
(change to baseline)
2013 Farm Bill Titles
CBO
baseline
S. 954
H.R. 1947
Outlays Proposed
(Baseline + Score)
S. 954
H.R. 1947
I
Commodities
58,765
-17,442
-18,626
41,323
40,139
II
Conservation
61,567
-3,511
-4,827
58,056
56,740
III
Trade
3,435
+150
+150
3,585
3,585
IV
Nutrition
764,432
-3,944
-20,509
760,488
743,923
V
Credit
-2,240
+0
+0
-2,240
-2,240
VI
Rural Development
13
+228
+96
241
109
VII
Research
111
+781
+760
892
871
VIII
Forestry
3
+10
+5
13
8
IX
Energy
243
+880
+0
1,123
243
X
Horticulture
1,061
+250
+479
1,311
1,540
XI
Crop Insurance
84,105
+4,999
+8,914
89,104
93,019
XII
Miscellaneous
1,410
-294
+161
1,116
1,571
972,905
-17,894
-33,397
955,012
939,508
Total
Source: CRS Report R42484, Budget Issues Shaping a Farm Bill in 2013, using the CBO baseline (May 2013, at
http://cbo.gov/publication/44177) and CBO cost estimates of S. 954 as reported by the Senate Agriculture
Committee (http://cbo.gov/publication/44248, May 17, 2013), and H.R. 1947 as reported by the House
Agriculture Committee (http://cbo.gov/publication/44271, May 23, 2013).
Notes: Incorporates into Title X (Horticulture) the scores of promotion orders that are classified as revenue.
Figure 1.Ten-Year Mandatory Baseline for Farm Bill Titles
(10-year expected outlays FY2014-FY2023 in billions of dollars by farm bill title)
Source: CRS, using the May 2013 CBO baseline.
Congressional Research Service
5
What Is the Farm Bill?
Figure 2. Ten-Year Scores of the Senate and House 2013 Farm Bills
(change in outlays over FY2014-FY2023 in billions of dollars by farm bill title, relative to baseline)
Source: CRS, using CBO cost estimates of S. 954 as reported by the Senate Agriculture Committee (http://cbo.
gov/publication/44248, May 17, 2013), and H.R. 1947 as reported by the House Agriculture Committee (http://
cbo.gov/publication/44271, May 23, 2013).
Notes: Incorporates into Title X (Horticulture) the scores of promotion orders that are classified as revenue.
What Are the Key Issues?
Deficit Reduction and the Budget
Budget issues are among the primary factors affecting the development of a new farm bill. The
desire by many to redesign farm policy and reallocate the remaining farm bill budget—in a
sequestration and deficit reduction environment—is driving much of the farm bill debate.
Several
high-profile congressional and Administration deficit reduction proposals have targeted
agricultural programs specifically.15 Political dynamics concerning sequestration and broader
deficit reduction goals leave open
difficult questions about how much and when the farm bill
budget may be reduced. In this
context, Congress faces difficult choices about how much total
support to provide for agriculture,
and how to allocate that support among competing constituencies.
Several high-profile congressional and Administration deficit reduction proposals have targeted
agricultural programs specifically.9 Across-the-board reductions to many farm bill programs also
could occur in 2013 unless Congress avoids an automatic budget sequestration process, though
nutrition assistance is exempt from sequestration, and crop insurance and some farm commodity
and conservation outlays in 2013 appear to be exempt.10
Compared to the $993 billion baseline of outlays over the 10-year period, the Senate-passed farm
bill, S. 3240, would reduce spending by $23.1 billion (-2.3%); and the House-reported bill, H.R.
6083, would reduce it by $35.1 billion (-3.5%, Table 1). The $23 billion 10-year reduction in the
Senate bill is consistent with a joint House and Senate agriculture committees’ proposal to the
Joint Select Committee on Deficit Reduction in the fall of 2011. The $35 billion reduction over
10 years in the House committee bill is consistent with the scale of budget reconciliation
instructions in the House budget resolution for FY2013. The bills make fairly similar budgetary
changes to the farm commodity programs, crop insurance, and conservation from a combined
budget perspective. However, the changes to nutrition assistance are more stark between the bills,
with a $4 billion reduction in the Senate bill and $16 billion reduction in the House committee
bill. The reduction in the House committee bill is considered excessive by some groups and too
small by others. and how to allocate that support among competing
constituencies.
15
CRS Report R42484, Budget Issues Shaping a Farm Bill in 2013.
Congressional Research Service
6
What Is the Farm Bill?
Nutrition Assistance
The Supplemental Nutrition Assistance Program (SNAP), formerly called the Food Stamp
Program, provides benefits to increase the food purchasing power of eligible low-income
households. SNAP reaches a large share of low-income households. In April 2012, 46March 2013, 47.7 million
persons in 2223.1 million households benefitted from SNAP.1116
The nutrition share of the farm bill budget has increased over time. When the 2008 farm bill was
enacted, the nutrition title was 67% of the 10-year total ($406 billion out of $604 billion). Five
years later, it is 7879% of the total ($772764 billion out of $993973 billion). This trend does not mean,
however, that the nutrition programs have grown at the expense of the agricultural programs.
9
CRS Report R42484, Budget Issues Shaping a 2012 Farm Bill.
Office of Management and Budget, Report Pursuant to the Sequestration Transparency Act of 2012, Sept. 2012.
11
CRS Report R42505, Supplemental Nutrition Assistance Program (SNAP): A Primer on Eligibility and Benefits.
10
Congressional Research Service
5
What Is the Farm Bill?
Nonetheless, the growth in nutrition spending has been highlighted and is being considered for
reduction, as discussed in the previous section
Nonetheless, the growth in nutrition spending has been highlighted and is being considered for
reduction, as discussed in the previous section.
Proposed changes to nutrition assistance differ more starkly between the farm bill proposed by
the Senate and House in the 113th Congress, with a $3.9 billion reduction in the Senate-passed bill
and $20.5 billion reduction in the House Committee-reported bill (Figure 2). The reduction in the
House Committee bill is considered excessive by some groups and too small by others.
Two nutrition issues stand out among those being considered in the 20122013 farm bill: becoming
eligible for SNAP benefits based on participation in other low-income assistance programs
(“categorical eligibility”),1217 and how minimal payments from the Low-Income Home Energy
Assistance Program (LIHEAP) can affect SNAP benefit calculations.1318 The House committee and
Senatecommitteereported and Senate-passed farm bills are identical on the LIHEAP change, but only the House
bill would restrict
categorical eligibility.
Farm Commodity Policy Reform
Farm commodity price and income support programs raise farm income by making direct
payments and reducing financial risks from uncertain weather and market conditions. Programs
with government-set target prices (or revenue benchmarks) offer payments when market prices
(or farm revenue) fall below support levels. Simultaneously, the federal crop insurance program
protects producers against losses in crop revenue or yield through federally subsidized policies
purchased by producers.1419
The commodity programs usually are a contentious component of a farm bill. Proponents want a
strong safety net for farmers, while opponents often cite costs relative to other policy priorities.
Critics point out that farm bill dollars are not equitably shared across the sector. Benefits flow to a
limited number of staple commodities—mainly corn, soybeans, wheat, cotton, rice, dairy, and
sugar—and not to fruits, vegetables, or livestock. Subsidies are proportional to production,
allowing larger farms to receive more than smaller ones. The farm economy also plays a role in
16
USDA data as of June 7, 2013 (Number of Persons: http://www.fns.usda.gov/pd/29snapcurrpp.htm; Number of
Households: http://www.fns.usda.gov/pd/30SNAPcurrHH.htm). Also see CRS Report R42505, Supplemental Nutrition
Assistance Program (SNAP): A Primer on Eligibility and Benefits.
17
CRS Report R42054, The Supplemental Nutrition Assistance Program: Categorical Eligibility.
18
CRS Report R42591, The Next Farm Bill: Changing the Treatment of LIHEAP Receipt in the Calculation of SNAP
Benefits.
19
CRS Report R40532, Federal Crop Insurance: Background.
Congressional Research Service
7
What Is the Farm Bill?
the outcome. In recent years, farm sector income has been historically high, though variability has
increased.1520 Some say agriculture does not need as much support as in prior years; others look at
the same data and see high volatility justifying an enhanced safety net.
Of the non-nutrition funding available in the farm bill (about $221208 billion over 10 years), $91
billion is available for crop insurance, $63 billion is available for farm commodity price and
income supports, and $64 billion is available for conservation. The combined change that is
proposed in the House committee a
majority of available funds is divided among crop insurance ($84 billion, or 8.6%) and farm
commodity price and income supports ($59 billion, or 6.0%). See Figure 1.
The combined change that is proposed in the Senate-passed and the House Committee-reported
bill to the farm commodity program and crop insurance (-$14.1
billion over 10 years) is similar to those programs in the Senate bill (-$14.4 billionis similar (Figure 2), though each
chamber takes a somewhat different approach to reform.
The House committee and Senate farm bills Both propose to restructure the farm
programs by
eliminating fixed direct payments and the existing counter-cyclical price and
revenue programs.
Some of the savings from eliminating direct payments would be used to offset
the cost of new
farm programs and enhance crop insurance. Both bills borrow conceptually from current
current programs, revising and renaming them to enhance price or revenue protection for producers.16
12
CRS Report R42054, The Supplemental Nutrition Assistance Program: Categorical Eligibility.
CRS Report R42591, 2012 Farm Bill: Changing the Treatment of LIHEAP Receipt in the Calculation of SNAP
Benefits.
14
CRS Report R40532, Federal Crop Insurance: Background and Issues.
15
CRS Report R40152, U.S. Farm Income.
16
CRS Report R42759, Farm Safety Net Provisions in a 2012 Farm Bill: S. 3240 and H.R. 6083.
13
Congressional Research Service
6
What Is the Farm Bill?
Disaster Assistance
In the summer of 2012, drought spread across much of the United States and adversely affected
agricultural producers. As of October 3, 2012, the Secretary of Agriculture has designated nearly
2,100 counties as disaster areas. Agricultural disaster assistance has been common on an ad hoc
basis since the 1980s. The 2008 farm bill also added “permanent” agricultural disaster assistance
programs—permanent in the sense that a pool of money was available for disasters without
needing supplemental appropriations, but not permanent in that authority expired in September
2011 without a budget for reauthorization. The 2012 drought fueled congressional interest in
reauthorizing disaster programs.17
Five disaster programs were established in the 2008 farm bill for weather-induced losses in
FY2008-FY2011. Both the House and Senate farm bills would reauthorize four programs
covering livestock and tree assistance for FY2012-FY2017. The crop disaster program from the
2008 farm bill (i.e., Supplemental Revenue Assistance, or SURE) is not reauthorized in either
bill, but elements of it are folded into the Senate bill by allowing producers to protect against
farm-level revenue losses (not included in House bill). The Senate farm bill also provides disaster
benefits to tree fruit producers who suffered crop losses in 2012.
In the absence of action House floor action on the committee-approved farm bill, the House
passed a limited disaster assistance bill (H.R. 6233) on August 2, 2012. The House bill would
extend for one year (for losses through September 30, 2012) the same four disaster provisions that
are extended for six years in the omnibus farm bill proposals.
The Rest of the Farm Bill
Beyond nutrition, farm commodity programs, disaster assistance and the budget, the breadth of
the rest of the farm bill reflects important issues for various constituencies. The House committee
and Senate proposals for the new farm bill indicate some differences in the direction of continued
funding for various horticulture and specialty crop programs, bioenergy programs, conservation
program reorganization, rural development and research programs. For more details of specific
provisions in the farm bill proposals, see CRS Report R42552, The 2012 Farm Bill: A
Comparison of Senate-Passed S. 3240 and the House Agriculture Committee’s H.R. 6083 with
producers.21
The Rest of the Farm Bill
Beyond nutrition, farm commodity programs and the budget, the breadth of the rest of the farm
bill reflects important issues for various constituencies. Both the Senate and House proposals for
the new farm bill indicate some differences in the direction of continued funding for various
horticulture and specialty crop programs, bioenergy programs, conservation program
reorganization, disaster programs, rural development and research programs. About 6% of the
baseline is for mandatory spending on conservation programs ($62 billion), with another less than
1% of the baseline for international trade, horticulture programs, and the miscellaneous title. See
Figure 1.
For more details of specific provisions in the farm bill proposals across all titles, see CRS Report
R43076, The 2013 Farm Bill: A Comparison of the Senate-Passed Bill (S. 954) and HouseReported Bill (H.R. 1947) with Current Law.
Author Contact Information
Renée Johnson
Specialist in Agricultural Policy
rjohnson@crs.loc.gov, 7-9588
1720
21
Jim Monke
Specialist in Agricultural Policy
jmonke@crs.loc.gov, 7-9664
CRS Report RS21212, Agricultural Disaster AssistanceR40152, U.S. Farm Income.
CRS Report R42759, Farm Safety Net Provisions in a 2012 Farm Bill: S. 3240 and H.R. 6083.
Congressional Research Service
78