Expiring Farm Bill Programs Without a
Budget Baseline

Jim Monke
Specialist in Agricultural Policy
August 21, 2012
Congressional Research Service
7-5700
www.crs.gov
R41433
CRS Report for Congress
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epared for Members and Committees of Congress

Expiring Farm Bill Programs Without a Budget Baseline

Summary
The Food, Conservation, and Energy Act of 2008 (P.L. 110-246, the 2008 farm bill) authorizes
most federal farm and food policies. Its authorizations generally expire at the end of FY2012, or
with the 2012 crop year for the farm commodity programs.
The farm bill provides the mandatory funding for many farm bill programs, including the farm
commodity programs and some nutrition, conservation, research, bioenergy, and rural
development programs. Funding to write the next farm bill will be based on the baseline
projection of the cost of these farm bill programs by the Congressional Budget Office (CBO), and
on varying budgetary assumptions about whether programs will continue.
Some farm bill programs have baseline beyond the end of the 2008 farm bill, while others do not.
Those with continuing baseline essentially have built-in future funding if policymakers decide the
programs should continue in their current form. However, 37 programs that received mandatory
funds during the 2008 farm bill are not assumed to continue from a budgetary perspective
because they do not have a budgetary baseline beyond FY2012. If policymakers want to continue
these programs in the next farm bill, they will need to pay for the programs with offsets.
Depending on the approach used to estimate a cost to extend the 37 programs for five years, an
estimated $9 billion to $14 billion of offsets from other sources may be needed. This is nearly 3%
of the $507 billion five-year CBO baseline for farm bill programs (FY2013-FY2017), or 13% of
the $108 billion five-year baseline if the nutrition title is excluded. Finding this level of offsets
may be a difficult task in a tight budget environment, especially when many observers believe
that some of the farm bill baseline may be lost to deficit reduction.
The 37 provisions without baseline beyond FY2012 are spread among 12 of the 2008 farm bill’s
15 titles. The title with the most such provisions is the energy title (8), followed by conservation
(5), nutrition (5), and horticulture and organic agriculture (5). Just two of the provisions—the
agricultural disaster assistance program and the Wetlands Reserve Program, each with uncertainty
about future costs—account for about 80% of the value of programs without future baseline.
The House and Senate proposals for the 2012 farm bill provide funding to continue some of the
37 programs without budget baseline. The Senate farm bill, S. 3240, provides more than $3
billion of mandatory funding for 26 of the programs, and the House farm bill, H.R. 6083,
provides more than $1.9 billion of mandatory funding for 14 of the programs.
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Expiring Farm Bill Programs Without a Budget Baseline

Contents
Introduction...................................................................................................................................... 1
Programs Without Baseline After FY2012...................................................................................... 2
Programs Grouped by Title of the 2008 Farm Bill.................................................................... 3
Programs Grouped by Degree of Cost Uncertainty................................................................... 4
Programs Grouped by Duration of Use of Mandatory Funding................................................ 9
What Happens to These Programs in the 2012 Farm Bill?.............................................................. 9

Tables
Table 1. Titles in the 2008 Farm Bill Containing Programs
Without Baseline After FY2012................................................................................................... 3
Table 2. Programs in the 2008 Farm Bill Without Budget Baseline After FY2012........................ 5
Table 3. What Happens in the 2012 Farm Bill to the 37 Programs in the 2008 Farm Bill
Without Baseline after FY2012? ................................................................................................ 10

Contacts
Author Contact Information........................................................................................................... 16
Acknowledgments ......................................................................................................................... 16

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Expiring Farm Bill Programs Without a Budget Baseline

Introduction
The Food, Conservation, and Energy Act of 2008 (P.L. 110-246)—the 2008 farm bill—authorizes
and determines most federal farm and food policies.1 The farm bill also provides funding for
mandatory programs because they were paid for at the time the farm bill was enacted.2
The farm bill’s mandatory programs include the farm commodity programs, some nutrition and
conservation programs, and various smaller research, bioenergy, and rural development
programs. These amounts are shown in the Congressional Budget Office (CBO) budget scores
and baseline projections for mandatory spending (direct spending). CBO develops the baseline
under the supervision of the House and Senate Budget Committees.3
The CBO baseline projection is an estimate at a particular point in time of what federal spending
on mandatory programs likely would be under current law. The baseline serves as a benchmark or
starting point for the budget. When new provisions are introduced that affect mandatory
spending, their impact (or “score”) is measured as a difference from the baseline. Increases in
cost above the baseline may be subject to budget constraints such as PAYGO.4
Some farm bill programs have baseline beyond the end of the 2008 farm bill, while others do not.
This funding issue—and the difficult budget dynamics that it might cause for the next farm bill—
was identified by the chief economist of the House Agriculture Committee in early 2009.5 It
subsequently has been mentioned by members in hearings.6
From a budget perspective, programs with a continuing baseline are assumed to go on under
current law, and have their own funding if policymakers want them to continue.7 That future
funding also may be used as a budgetary offset to fund other programs or for deficit reduction.
However, 37 programs that received mandatory funding in the 2008 farm bill do not have any
baseline beyond the end of the farm bill (Table 1 and Table 2) and are not assumed to continue
under budget rules. To continue them for five years in the next farm bill, an estimated $9 billion
to $14 billion may be needed and offsets from other programs could be necessary.

1 For more background on the scope of the farm bill, see CRS Report RS22131, What Is the “Farm Bill”?.
2 Actual outlays in the future may be higher or lower depending on market conditions or participation, with no
corresponding costs being charged or savings being credited to the agriculture committees. The farm bill also makes
“authorizations of appropriations” for discretionary programs, but these funds are paid for in the appropriations process
rather than in the farm bill (see CRS Report R41964, Agriculture and Related Agencies: FY2012 Appropriations).
3 For more information, see CRS Report 98-560, Baselines and Scorekeeping in the Federal Budget Process.
4 See CRS Report R41157, The Statutory Pay-As-You-Go Act of 2010: Summary and Legislative History.
5 Craig Jagger, Chief Economist of House Agriculture Committee (now minority), slides 53-54 in “Understanding the
Congressional Budget Process and How It Affects Farm Policy,” presentation to the University of Arkansas, April 21,
2009, at http://agribus.uark.edu/Craig_Jagger_lecture.ppt. “[S]topping funding early means that the program does not
earn a baseline. Without a baseline, there are no funds for continuing the program in future legislation.… New funding
will need to be found for the 2012 farm bill to continue programs that were stopped after five years.”
6 For example: Frank Lucas, Chair of House Agriculture Committee (then ranking Member), at “Hearing to Preview
U.S. Agriculture Policy in Advance of the 2012 Farm Bill,” April 21, 2010. “This next farm bill is shaping up to be one
of the most difficult.... There are many challenges. Not least of all is the uncertainty of the budget parameters.… Many
of the popular conservation programs do not have funding past 2012. In essence, we already start with a deficit.”
7 For example, the March 2012 CBO baseline for the farm commodity programs, conservation programs, crop
insurance, and trade programs is available at http://cbo.gov/publication/43053.
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Programs Without Baseline After FY2012
Thirty-seven provisions in the 2008 farm bill received mandatory budget authority but are not
assumed to receive such funding in the budget baseline beyond the end of the farm bill. If
policymakers want to continue these programs in the next farm bill, they will need to pay for the
programs with offsets from other sources.
The amount of mandatory funds that might be needed to extend these 37 programs is estimated
here to be about $9 billion to $14 billion over a five-year period (Table 1), depending on the
approach to estimate costs.8 The cost was separately estimated in 2010 by a House Agriculture
Committee economist at $9 billion.9 These amounts are nearly 3% of the $507 billion five-year
CBO baseline for farm bill programs (FY2013-FY2017, based on the March 2012 baseline), or
13% of the $108 billion five-year baseline if the nutrition title is excluded.10 It would cost even
more to try to extend the programs for a longer time so that they could have baseline beyond the
next farm bill.
Normally, a program that receives mandatory funding in the last year of its authorization will be
assumed to continue at that level of funding in the budget baseline as if there were no change in
policy. This allows major farm bill provisions such as the farm commodity programs or nutrition
assistance to be reauthorized periodically without assuming that funding will cease or following
zero-based budgeting. However, some programs may not be assumed to continue in the budget
baseline beyond the end of a farm bill because
• the program did not receive new mandatory budget authority during the last year
of a farm bill, or
• the baseline during the last year of a farm bill is below a minimum $50 million
scoring threshold that is needed to continue a baseline, or
• the budget and agriculture committees did not give the program a baseline in the
years beyond the farm bill in order to reduce the program’s 10-year cost at the
time the farm bill was written.11
The 37 programs without baseline beyond FY2012 can be grouped in several ways: by title of the
farm bill, by the degree of uncertainty in the cost, and by the duration of the use of mandatory
funding in the 2008 farm bill.

8 Estimates are derived under two different approaches discussed in the next section: (1) the CBO cost at the time of
enactment in 2008, and (2) the most recent CBO baseline of program costs.
9 In 2010, Craig Jagger, Chief Economist of the House Agriculture Committee (now minority), estimated about $9
billion as the cost to continue programs without baseline, using the March 2010 CBO data. See “Federal Budget Issues
& the Next Farm Bill,” Farm Foundation Forum, “Budget Implications for the Next Farm Bill,” September 14, 2010,
slide 45, at http://www.farmfoundation.org/news/articlefiles/363-Jagger_Budget_Color_Farm%20Found_09-14-10.pdf.
10 For more background on farm bill baselines and actual spending, see CRS Report R41195, Actual Farm Bill
Spending and Cost Estimates
.
11 Section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 (P.L. 99-177, 2 U.S.C. 907), as
amended, specifies that expiring mandatory spending programs are assumed to continue in the budget baseline if they
have outlays of more than $50 million in the current year and were established before the Balanced Budget Act of
1997. Programs established later are not automatically assumed to continue, and are assessed program by program in
consultation with the House and Senate Budget Committees. (CBO, The Budget and Economic Outlook: Fiscal Years
2012 to 2022
, pp. 11 and 64, at http://www.cbo.gov/sites/default/files/cbofiles/attachments/01-31-2012_Outlook.pdf).
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Table 1. Titles in the 2008 Farm Bill Containing Programs
Without Baseline After FY2012
(titles in the Food, Conservation, and Energy Act of 2008 with provisions that receive mandatory budget
authority, but are not assumed to continue in the budget baseline beyond FY2012)
Ranked by Number of Provisions
Ranked by Cost of Provisions
Estimated cost to extend under



two approaches ($ million, 5 yrs.)a
Number of
CBO score at
CBO baseline
Farm Bill Title
provisions
Farm Bill Title
2008 passageb
in March 2012b
Energy
8
Agricultural Disaster Assistance
4,846
9,000
Conservation 5
Conservation 2,105
2,725
Nutrition 5
Energy
1,112
1,162
Horticulture and Organic Agriculture
5
Research
383
383
Rural Development
3
Miscel aneous
175
175
Research 3
Rural
Development
150
150
Trade 2
Trade
144
144
Miscel aneous
2
Horticulture and Organic Agriculture
95
95
Farm Commodity Programs
1
Farm Commodity Programs
50
50
Forestry 1
Forestry
39
39
Livestock 1
Nutrition
31
31
Agricultural Disaster Assistance
1
Livestock
1
1
Total 37
Total
9,131
13,955
Source: Compiled by CRS using P.L. 110-246; the CBO score of the 2008 farm bill; the March 2012 CBO
baseline; and Reuters, “High price tag to revive U.S. farm disaster programs,” May 11, 2011.
Notes: The provisions selected had mandatory budget authority at some time during the 2008 farm bill, but do
not have baseline beyond FY2012. Amounts are estimates and are the five-year funding specified in statute or, if
unspecified, either the CBO score at enactment in 2008 or updated for newer CBO data. Amounts for two
estimated conservation programs are CBO’s actual amounts from FY2008 to FY2011 and the projection for
FY2012; the amount for biomass crop assistance (part of energy) is the FY2012 projection multiplied by 5; and
the amount for disaster assistance was cited in the press as a CBO score in May 2011 (see Table 2 for details).
a. Unofficial estimates in the absence of projections by CBO that would be based on proposed legislation.
b. If a fixed amount was specified in the 2008 farm bill, then that amount is used in both cost columns.
Programs Grouped by Title of the 2008 Farm Bill
Programs without baseline beyond FY2012 are spread among 12 of the 2008 farm bill’s 15 titles
(Table 1). The title with the most such provisions is the energy title (8), followed by conservation
(5), nutrition (5), and horticulture and organic agriculture (5).
The ranking among the titles is much different based on the dollar amounts that might be needed
to continue the provisions in the next farm bill (the right half of Table 1). The title with the
largest cost to extend programs without baseline is agricultural disaster assistance ($4.8 billion to
$9 billion, depending on the estimation approach), followed by conservation ($2.1 billion to $2.7
billion), energy ($1.1 billion to $1.2 billion), and research ($383 million).
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Programs Grouped by Degree of Cost Uncertainty
Farm bill funding typically is specified as either (1) a fixed dollar amount or (2) “such sums as
necessary” to operate a program under specified provisions (the “type” column in Table 2).
For the fixed dollar amount programs (type = “fixed”), the five-year cost to continue a provision
is assumed to equal the five-year sum of the funding specified in the 2008 farm bill. Given the
likelihood of a “baseline farm bill”—that is, a farm bill without additional funding to increase
spending—or a farm bill facing deficit reduction, many people believe that it is unlikely that any
or many of these programs could see an increase above what they received in the 2008 farm bill.
Fixed-dollar funding was specified for 33 of the 37 provisions in the 2008 farm that do not have
baselines beyond 2012. The total five-year amount for these 33 programs was about $2.4 billion,
which is about one-fourth of the total of the provisions without baseline (Table 2).12
For the “such sums as necessary” programs (type = “estimated”), CBO estimates how much the
provision is expected to cost. The estimated five-year cost to extend a provision was computed
under two different approaches:
• the CBO cost estimates at the time of enactment of the 2008 farm bill, and
• the most recent CBO baseline projection based on more recent estimates.
As with the fixed-dollar amounts, these are unofficial estimates in the absence of projections by
CBO that would be based on actual proposed legislation. Presenting estimates from both
approaches helps provide a range of costs and indicates where uncertainty is more apparent.13
Only 4 of the 37 provisions without baseline have “such sums as necessary” funding. They
account for the difference in the costs between the two approaches (the two cost columns).
Although fewer in number than the fixed-amount group, they account for $6.7 billion to $11.5
billion (depending on the approach), which is about 80% of the total for provisions without
baseline (Table 2).
In the 2008 farm bill, Congress indicated its relative priorities for programs by the tradeoff or
allocation of budgetary resources among programs. If a proposal was deemed too expensive
during legislative development, its parameters may have been tightened to reduce costs. After
enactment, some “such sums as necessary” programs may become more expensive than first
estimated. If selected for continuation, would the program continue at its current higher cost, or
be redesigned in the next farm bill to cost less? Thus, which of the two approaches is better
depends on whether one believes Congress would change program parameters, for example, to
reduce a program that has become more expensive than initially expected, or whether Congress
would continue current program provisions and pay a higher cost than in 2008.

12 Other approaches are possible, such as, for example, assuming that programs continue at the level of their last year of
authorization (an approach sometimes used for programs with continuing baseline). Some fixed-cost programs receive
increasing amounts over time, with the largest amount in FY2012 (examples are apparent in the “comments” column of
Table 2). If the last year of the authorization (FY2012) were used as the cost to continue the programs, the cost to
extend the 33 fixed-cost provisions would be about $500 million higher than the $2.4 billion estimate.
13 Other approaches also are possible (see footnote 12). Assumptions within these approaches also may lead to different
results, such as the length of time that agricultural disaster assistance might be extended, or implementation and
regulatory decisions for the biomass crop assistance program (BCAP), as discussed in notes to Table 2.
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Table 2. Programs in the 2008 Farm Bill Without Budget Baseline After FY2012
(provisions in the Food, Conservation, and Energy Act of 2008 that receive mandatory budget authority,
but are not assumed to continue in the budget baseline beyond FY2012)



Estimated cost to extend ($ million, 5 yrs.)a
CBO score
CBO
at 2008
baseline in
Section
Name of Provision
Comments
Termb Typec
passaged
March 2012d
Farm Commodity Programs
Sec. 1622
Implementation (of farm
$50 million in FY2009 to the Farm Service
Short Fixed
50 50
commodity programs in
Agency to help implement the farm bill.
Title I)
Such expenses usual y are discretionary.
Subtotal, Farm Commodity Programs
50
50
Conservation
Sec. 2202
Wetlands Reserve Program
3.04 million acres to be enrolled through
Ful Est. 1,460
2,100e
FY2012. The 2008 farm bill added $128-338
million of costs to baseline annually.
Sec. 2403
Grassland Reserve Program
1.22 million additional acres to be enrolled
Ful Est.
320
300e
during FY2009-2012. The farm bill added
$63-80 million of costs to baseline annually.
Sec. 2606
Voluntary Public Access and $50 million for the period FY2009-2012,
Short Fixed
50
50
Habitat Incentive Program
made available in FY2009.
Sec. 2803
Smal Watershed
$100 million in FY2009, to remain available
Short Fixed
100
100
Rehabilitation Program
until expended. Discretionary
appropriations also are authorized.
Sec. 2807
Desert Terminal Lakes
$175 million in FY2008, to remain available
Short Fixed
175
175
until expended (transfer from USDA to
Dept. of Interior’s Bureau of Reclamation).
Subtotal, Conservation
2,105 2,725
Trade
Sec. 3106
McGovern-Dole
$84 million in FY2009, to remain available
Short Fixed
84
84
International Food for
until expended. It also receives annual
Education and Child
discretionary appropriations (e.g., $184
Nutrition Program
mil ion in FY2012).
Sec. 3206
Local and Regional Food
$5 million in FY2009, $25 million in FY2010
Ful Fixed
60
60
Aid Procurement Projects
and FY2011, and $5 million in FY2012.
Results of pilot program to be evaluated.
Subtotal, Trade
144 144
Nutrition
Sec. 4141
Pilot projects to evaluate
$20 million of mandatory funds in FY2009,
Short Fixed
20
20
health and nutrition
to remain available until expended.
promotion in the
Discretionary appropriations also are
supplemental nutrition
authorized.
assistance program
Sec. 4142
Study on Comparable
$1 million of mandatory funds in FY2009, to
Short Fixed
1
1
Access to Supplemental
remain available until expended.
Nutrition Assistance for
Puerto Rico
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Estimated cost to extend ($ million, 5 yrs.)a
CBO score
CBO
at 2008
baseline in
Section
Name of Provision
Comments
Termb Typec
passaged
March 2012d
Sec. 4305
Whole Grain Products (for
$4 million of Section 32 funds to be made
Short Fixed
4
4
school lunches and
available in FY2009 (CBO estimate).
breakfasts)
Sec. 4307
Survey of Foods Purchased
$3 million in FY2009. Short
Fixed
3
3
by School Food Authorities
Sec. 4402
Assistance For Community
$1 million in each of FY2009-2011.
Short Fixed
3
3
Food Projects: Healthy
Discretionary appropriations are authorized
Urban Food Enterprise
at $2 million for FY2012.
Development Center
Subtotal, Nutrition
31 31
Rural Development
Sec. 6022
Rural Microentrepreneur
$4 million in each of FY2009-2011 and $3
Ful Fixed
15
15
Assistance Program
mil ion in FY2012.
Sec. 6029
Funding of Pending Rural
$120 million in FY2008, to remain available
Short Fixed
120
120
Development Loan and
until expended, to reduce a backlog of
Grant Applications
approved applications. Discretionary
appropriations usual y fund these programs.
Sec. 6202
Value-Added Agricultural
$15 million in FY2009, to remain available
Short Fixed
15
15
Market Development
until expended. It also receives annual
Program Grants
discretionary appropriations.
Subtotal, Rural Development
150 150
Research
Sec. 7206
Organic Agriculture
$18 million in FY2009, and $20 mil ion in
Ful Fixed
78
78
Research and Extension
each of FY2010-2012.
Initiative
Sec. 7311
Specialty Crop Research
$30 million in FY2008, and $50 mil ion in
Ful Fixed
230
230
Initiative
each of FY2009-2012.
Sec. 7410
Beginning Farmer and
$18 million in FY2009, and $19 mil ion in
Ful Fixed
75
75
Rancher Development
each of FY2010-2012.
Subtotal, Research
383 383
Forestry
Sec. 8205
Healthy Forests Reserve
$9.75 million each year for FY2009-2012, to
Ful Fixed
39
39
Program
remain available until expended.
Subtotal, Forestry
39 39
Energy
Sec. 9002
Biobased Markets Program
$1 million in FY2008, and $2 million each
Ful Fixed
9
9
year for FY2009-2012.
Sec. 9003
Biorefinery Assistance
$75 million in FY2009, and $245 mil ion in
Short Fixed
320
320
FY2010. Discretionary appropriations also
are authorized.
Sec. 9004
Repowering Assistance
$35 million in FY2009, to remain available
Short Fixed
35
35
until expended. Discretionary
appropriations also are authorized.
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Estimated cost to extend ($ million, 5 yrs.)a
CBO score
CBO
at 2008
baseline in
Section
Name of Provision
Comments
Termb Typec
passaged
March 2012d
Sec. 9005
Bioenergy Program for
$55 million in each of FY2009-FY2010, $85
Ful Fixed
300
300
Advanced Biofuels
mil ion in FY2011, and $105 million in
FY2012, to remain available until expended.
Sec. 9006
Biodiesel Fuel Education
$1 million in each of FY2008-2012.
Full
Fixed
5
5
Program
Sec. 9007
Rural Energy For America
$55 million in FY2009, $60 million in
Ful Fixed
255
255
Program (REAP)
FY2010, and $70 million in each of FY2011-
2012, to remain available until expended.
Sec. 9008
Biomass Research and
$20 million in FY2009, $28 million FY2010,
Ful Fixed
118
118
Development
$30 million in FY2011, and $40 mil ion in
FY2012, to remain avail. until expended.
Sec. 9011
Biomass Crop Assistance
Indefinite appropriation of mandatory funds
Ful Est.
70
120f
Program
(such sums as necessary) for FY2008-2012.
Subtotal, Energy
1,112 1,162
Horticulture and Organic Agriculture
Sec. 10106 Farmers’ Market Promotion $3 million in FY2008, $5 million in each of
Ful Fixed
33
33
Program
FY2009-FY2010, and $10 million in each of
FY2011-FY2012.
Sec. 10202 National Clean Plant
$5 million in each of FY2009-2012, to
Ful Fixed
20
20
Network
remain available until expended.
Sec. 10301 National Organic
$22 million in FY2008, to remain available
Short Fixed
22
22
Certification Cost-Share
until expended.
Sec. 10302 Organic Production and
$5 million in FY2008, to remain avail. until
Short Fixed
5
5
Market Data Initiatives
expended. Discretionary also is authorized.
Sec. 10404 Market Loss Assistance for
$15 million in FY2008 for market loss
Short Fixed
15
15
Asparagus Producers
payments for the 2004-2007 crop years.
Subtotal, Horticulture and Organic Agriculture
95
95
Livestock
Sec. 11009 National Sheep Industry
$1 million in FY2008, to remain available
Short Fixed
1
1
Improvement Center
until expended.
Subtotal, Livestock
1 1
Agricultural Disaster Assistance
Sec. 12033 Supplemental agricultural
Authorized for FY2008-FY2011. CBO
Short Est.
4,846
9,000g
and Sec.
disaster assistance, including estimated in 2008 that the cost would be
15101
establishing the Agricultural
$4.846 billion over 4 years ending in
Disaster Relief Trust Fund
FY2011. The March 2012 baseline projects
$5.9 billion of outlays for the 4-year life of
the provision. Reuters reported in 2011 a
CBO score of $9 billion for a 5-year
extension.g
Subtotal, Agricultural Disaster Assistance
4,846
9,000
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Estimated cost to extend ($ million, 5 yrs.)a
CBO score
CBO
at 2008
baseline in
Section
Name of Provision
Comments
Termb Typec
passaged
March 2012d
Miscellaneous
Sec. 14004 Outreach and Technical
$15 million in FY2009, and $20 mil ion each
Ful Fixed
75
75
Assistance for Socially
year for FY2010-2012.
Disadvantaged Farmers or
Ranchers
Sec. 14012 Determination on Merits of
$100 million in FY2008, to remain available
Short Fixed
100
100
Pigford Claims
until expended.
Subtotal, Miscellaneous
175 175
Total: 37 provisions in 2008 farm bill without baseline beyond FY2012a

9,131
13,955
Subtotals by term (or duration) of mandatory funding




20 provisions with short-term use of mandatory funds in the 2008 farm bill
Short

5,969
10,123
17 provisions with full-term use of mandatory funds in the 2008 farm bill
Full

3,162
3,832
Subtotals by type of certainty about costs




33 provisions where cost is fixed or known in the farm bill

Fixed
2,435
2,435
4 provisions where cost is estimated based on implementation

Est.
6,696
11,520
Source: Compiled by CRS using P.L. 110-246; the CBO score of the 2008 farm bill (at enactment against the
March 2008 baseline, May 12, 2008, unpublished); the March 2012 CBO baseline (http://cbo.gov/publication/
43053); and Reuters, “High price tag to revive U.S. farm disaster programs,” May 11, 2011, at http://www.
reuters.com/article/2011/05/12/us-agriculture-disasters-aid-idUSTRE74B01N20110512.
a. Unofficial estimates in the absence of projections by CBO that would be based on proposed legislation.
b. Provisions were identified as having either short-term or full-term mandatory funding. Provisions selected as
short-term have mandatory budget authority at some time in the early years of the 2008 farm bill, but no
new mandatory budget authority in the last year (FY2012). Provisions selected as full-term have mandatory
budget authority at least during the last year of the farm bill, but no baseline beyond FY2012. Provisions
with full-term funding may not have an extended baseline either because (1) the funding during the last year
of a farm bill is below a minimum $50 million scoring threshold that is needed to continue a baseline, or (2)
the budget and agriculture committees did not give the program a baseline in the years beyond the farm bill
in order to reduce the program’s 10-year cost at the time the farm bill was written.
c. The cost of provisions is identified as either fixed or estimated. For fixed-cost programs, the cost is
specified by statute and equals the five-year funding provided in 2008 farm bill. For programs with estimated
costs, the cost to extend the provision depends on assumptions relevant for the heading of each column.
d. If a fixed amount was specified in the 2008 farm bill, then that amount is used in both cost columns.
e. Costs for WRP and GRP are CBO’s actual amounts from FY2008 to FY2011 and the projection for FY2012.
f.
Because USDA’s implementation rules for the biomass crop assistance program changed in 2010, this
estimate is CBO’s projected cost in FY2012 ($24 million) multiplied by five years. This estimate may be low,
however, because BCAP might have operated at a higher level if appropriations acts had not placed limits
on BCAP in recent years.
g. This cost estimate was cited in the press as a CBO score in May 2011 (Reuters, “High price tag to revive
U.S. farm disaster programs,” at http://www.reuters.com/article/2011/05/12/us-agriculture-disasters-aid-
idUSTRE74B01N20110512). At an average of $1.8 billion per year, the five-year $9 billion estimate is higher
than the historical $5.9 billion four-year cost of the supplemental agricultural disaster program (an average
of $1.5 billion per year). This estimate is sensitive to assumptions about interactions with crop insurance
and other agricultural support programs.
Congressional Research Service
8

Expiring Farm Bill Programs Without a Budget Baseline

Programs Grouped by Duration of Use of Mandatory Funding
In terms of the length of time that mandatory funding is used, 20 provisions in the 2008 farm bill
provided mandatory funding only in the early years of the 2008 farm bill (FY2008-FY2011).
These are estimated to cost $6 billion to $10 billion if they are extended in the next farm bill
(depending on the approach to estimate costs). Seventeen other provisions provided mandatory
funding for the entire duration of the farm bill. These are estimated to cost $3.2 billion to $3.8
billion if they are extended for five years (the “term” column in Table 2).
This distinction may be important for some observers because programs without full-term
funding may not be prioritized as highly as programs receiving full-term funding. Some of the
provisions were given short-term funding to help begin implementation or to fund a backlog of
unfunded obligations. Other programs received a short-term infusion of mandatory funding and
may be authorized to receive discretionary appropriations. These programs may have authority to
operate for the full term of the 2008 farm bill, regardless of the duration of mandatory funding.
The provisions listed with full-term funding do not have baseline either because their cost is
relatively small (less than the $50 million scoring threshold in FY2012) or because the budget
scoring at the time the 2008 farm bill was enacted did not assign a cost or give the program a
baseline for the second five years of the scoring window (to make the bill less expensive, as
discussed above in footnote 11).
Some of these programs are pilot programs or are new programs without a large or established
constituency (e.g., local and regional foreign food aid procurement, or the national clean plant
network). Six of them are bioenergy programs, and five affect specialty crops or beginning and
minority farmers. Others are relatively established programs, such as the wetlands reserve and
grasslands reserve programs in conservation.
In summary, 37 programs received mandatory funding in the 2008 farm bill, but do not have any
baseline for a new farm bill because their finding stopped before FY2012, their amounts are
below scoring thresholds, or they were intentionally unfunded for future years. An estimated $9
billion to $14 billion would be needed to continue these programs for five more years. Congress
would need to find offsets from other sources to continue them, a difficult task in a tight budget
environment.
What Happens to These Programs in the
2012 Farm Bill?
The House and Senate versions of the 2012 farm bill provide funding to continue some of
the 37 programs without budget baseline. The Senate farm bill, S. 3240, provides more
than $3 billion of mandatory funding for 26 of the programs, and the House farm bill,
H.R. 6083, provides more than $1.9 billion of mandatory funding for 14 of the programs
(Table 3).14

14 A definitive total is not possible because some of the programs are incorporated into other programs, and the share
going to the original program is unknown.
Congressional Research Service
9


Table 3. What Happens in the 2012 Farm Bill to the 37 Programs in the 2008 Farm Bill Without Baseline after FY2012?
2008 farm bill
2012 farm bill
Est. cost
S. 3240
H.R. 6083
to extend
Program in P.L. 110-246 without
$ million
$ million
$ million
baseline beyond FY2012
(5 yrs.)
Provision
(5 yrs.)
Provision
(5 yrs.)
Farm Commodity Programs
Implementation of farm commodity
50
Provides $100 million of mandatory funds from
100
Identical to the Senate bill. [Sec. 1612] 100
programs in Title I. $50 million in FY2009
the CCC to implement Title I. [Sec. 1614]
to the Farm Service Agency. [Sec. 1622]
Conservation
Wetlands Reserve Program. 3.04
2,100
Establishes the Agricultural Conservation
Incorp. Nearly identical to the Senate bill with minor
Incorp.
million acres to be enrolled through
Easement Program (ACEP). Combines the
differences. Does not allow the use of prior
FY2012. The 2008 farm bill added $128-
purposes of WRP, FPP, and GRP. Repeals WRP
year CCC funding for contracts entered into
338 million of costs to baseline annually
with transition provisions. [Sec. 2703, Sec.
before October 1, 2012. [Sec. 2703, Sec.
through 2012. [Sec. 2202]
2301(a)]
2301(a)]
Grassland Reserve Program. 1.22
300
Establishes the Agricultural Conservation
Incorp. Nearly identical to the Senate bill with minor
Incorp.
million additional acres to be enrolled
Easement Program (ACEP). Combines the
differences. [Sec. 2001(a-b)]
during FY2009-2012. The farm bill added
purposes of WRP, FPP, and GRP easements.
$63-80 million of costs to baseline
Adds grasslands to eligible lands for CRP,
annual y through 2012. [Sec. 2403]
consistent with consolidation of GRP rental
agreements. [Sec. 2301(a), Sec. 2001(a-b)]
Voluntary Public Access and Habitat
50
Reduces and extends authorization for $40
40
Reduces and extends authorization for $30
30
Incentive Program. $50 million for the
mil ion of mandatory funding for the period of
million of mandatory funding for the period of
period FY2009-2012, [Sec. 2606]
FY2013-FY2017. [Sec. 2503]
FY2013-FY2017. [Sec. 2503]
Small Watershed Rehabilitation
100
Does not authorize additional mandatory
0
Authorizes $250 million in mandatory funding
250
Program. $100 million in FY2009, to
funding. Extends authorization of
for FY2013 to remain available until expended.
remain available until expended.
appropriations for discretionary funding
Extends discretionary authorization through
Discretionary appropriations also are
through FY2017. [Sec. 2505]
FY2017. [Sec. 2505]
authorized. [Sec. 2803]
Desert Terminal Lakes. $175 million in
175
Includes the transfer of $150 million of CCC
150 No
comparable
provision.
0
FY2008, to remain available until
funds to the Bureau of Reclamation, among
expended (transfer from USDA to Dept.
other program changes. [Sec. 2506]
of Interior’s Bureau of Reclamation). [Sec.
2807]

CRS-10


2008 farm bill
2012 farm bill
Est. cost
S. 3240
H.R. 6083
to extend
Program in P.L. 110-246 without
$ million
$ million
$ million
baseline beyond FY2012
(5 yrs.)
Provision
(5 yrs.)
Provision
(5 yrs.)
Trade
McGovern-Dole International Food
84
Does not authorize additional mandatory
0
Same as the Senate bill. [Sec. 3204]
0
for Education and Child Nutrition
funding. Extends authorization of
Program. $84 million in FY2009, to
appropriations for discretionary funding
remain available until expended. [Sec.
through FY2017. [Sec. 3204]
3106]
Local and Regional Food Aid
60
Does not authorize additional mandatory
0 No
comparable
provision.
0
Procurement Projects. $5 million in
funding. Establishes a local and regional
FY2009, $25 million in FY2010 and
procurement program with appropriations of
FY2011, and $5 million in FY2012. [Sec.
$40 million authorized for each of FY2013
3206]
through FY2017. [Sec. 3207]
Nutrition
Pilot projects to evaluate health and
20
Although not completely correlated to the pilot
100 No
comparable
provision.
0
nutrition promotion in SNAP. $20
program, provides $100 million in mandatory
mil ion of mandatory funds in FY2009, to
funding over 5 years for incentive grants for
remain available until expended. [Sec.
projects that incentivize SNAP participants to
4141]
buy fruits and vegetables. [Sec. 4205]
Study on Comparable Access to
1
No comparable provision.
0
No comparable provision for Puerto Rico, but
32.5
Supplemental Nutrition Assistance for
a related provision for the Commonwealth of
Puerto Rico. $1 million of mandatory
the Northern Mariana Islands (CNMI):
funds in FY2009, to remain available until
Authorizes and provides $1 million in FY2013
expended. [Sec. 4142]
and FY2014 for a study to gauge CNMI’s
capacity to administer a SNAP pilot. Supports
pilot based on study results ($13.5 million in
FY2015, $8.5 million in each of FY2016 and
FY2017. [Sec. no. not yet available]
Whole Grain Products (for school
4
Renews mandatory funding for the Whole
10 No
comparable
provision.
0
lunches and breakfasts). $4 million of
Grain Pilot and evaluation; provides $10 million
Section 32 funds to be made available in
available over 2 years (FY2013 and FY2014.)
FY2009. [Sec. 4305]
[Sec. 4204]
Survey of Foods Purchased by
3
No comparable provision.
0
No comparable provision.
0
School Food Authorities. $3 million in
FY2009. [Sec. 4307]
CRS-11


2008 farm bill
2012 farm bill
Est. cost
S. 3240
H.R. 6083
to extend
Program in P.L. 110-246 without
$ million
$ million
$ million
baseline beyond FY2012
(5 yrs.)
Provision
(5 yrs.)
Provision
(5 yrs.)
Assistance For Community Food
3
No comparable provision.
0
No comparable provision.
0
Projects: Healthy Urban Food Enterprise
Development Center. $1 million in each
of FY2009-2011. [Sec. 4402]
Rural Development
Rural Microentrepreneur Assistance
15
Provides $3.75 million annual y in mandatory
15
No mandatory funding provided. Reauthorizes
0
Program. $4 million in each of FY2009-
spending for FY2014-FY2017. Reauthorizes
discretionary funding for the program at $20
2011 and $3 million in FY2012. [Sec.
discretionary funding the program. [Sec. 6001]
mil ion annual y for FY2013-FY2017, subject to
6022]
appropriations. [Sec. no. not yet available]
Funding of Pending Rural
120
Provides for one-time mandatory funding of
50 No
comparable
provision.
0
Development Loan and Grant
$50 million for pending rural development loan
Applications. $120 million in FY2008, to
and grant applications. [Sec. 6203]
remain available until expended, to reduce
a backlog of applications. [Sec. 6029]
Value-Added Agricultural Market
15
Authorizes $12.5 million annually in mandatory
50
No mandatory funding provided. Reauthorizes
0
Development Program Grants. $15
spending for FY2014-FY2017. Reauthorizes
discretionary funding of $50 million each fiscal
mil ion in FY2009, to remain available until
discretionary funding at $40 million annually for
year FY2013-2017. [Sec. 6203]
expended. [Sec. 6202]
FY2013-FY2017. [Sec. 6001]
Research
Organic Agriculture Research and
78
Provides CCC funds of $16 million for each
80
Identical funding as in the Senate bill. [Sec.
80
Extension Initiative. $18 million in
year FY2013-FY2017, and extends authority for
7211]
FY2009, and $20 million in each of
appropriated funding of $25 million through
FY2010-2012. [Sec. 7206]
FY2017. [Sec. 7208]
Specialty Crop Research Initiative.
230
Provides mandatory CCC funds of $25 million
200
Identical funding as in the Senate bill. [Sec.
200
$30 million in FY2008, and $50 million in
(FY2013); $30 million annually (FY2014-2015);
7306]
each of FY2009-2012. [Sec. 7311]
$65 million (FY2016); and $50 mil ion (FY2017
and each fiscal year thereafter). [Sec. 7305]
Beginning Farmer and Rancher
75
Provides mandatory funding of $17 million per
85
Mandatory annual funding at $10 mil ion per
50
Development Program. $18 million in
year for FY2013-FY2017 (to be available until
year for FY2013-FY2017 (to be available until
FY2009, and $19 million in each of
expended). [Sec. 7408]
expended). [Sec. 7410]
FY2010-2012. [Sec. 7410]
CRS-12


2008 farm bill
2012 farm bill
Est. cost
S. 3240
H.R. 6083
to extend
Program in P.L. 110-246 without
$ million
$ million
$ million
baseline beyond FY2012
(5 yrs.)
Provision
(5 yrs.)
Provision
(5 yrs.)
Forestry
Healthy Forests Reserve Program.
39
Eliminates mandatory funding authority and
0
Same as the Senate bill. [Sec. 8203] 0
$9.75 million each year FY2009-2012,
replaces with authorization to receive
available until expended. [Sec. 8205]
discretionary appropriations. [Sec. 8205]
Energy
Biobased Markets Program. $1 million
9
Authorizes mandatory funding of $3 million
15
No mandatory funding is authorized.
0
in FY2008, and $2 million each year for
annual y for FY2013-FY2017. [Sec. 9002]
Authorizes to be appropriated $2 million
FY2009-2012. [Sec. 9002]
annual y for FY2013-FY2017. [Sec. 9002]
Biorefinery Assistance. $75 million in
320
Authorized mandatory funding of $100 million
216
No mandatory funding is authorized.
0
FY2009, and $245 million in FY2010. [Sec.
for FY2013 and $58 million each for FY2014-
Authorizes to be appropriated $75 million
9003]
FY2015. [Sec. 9003]
annual y for FY2013-FY2017. [Sec. 9003]
Repowering Assistance. $35 million in
35
Repeals the Repowering Assistance Program
0
Identical to the Senate bill. [Sec. 9004] 0
FY2009, to remain available until
and transfers the remaining funds (of
expended. [Sec. 9004]
approximately $25 million to remain available
until expended) to the Rural Energy for
America Program (REAP). [Sec. 9004]
Bioenergy Program for Advanced
300
No mandatory funding is authorized.
0
No mandatory funding is authorized.
0
Biofuels. $55 million in each of FY2009-
Authorizes to be appropriated $20 million
Authorizes to be appropriated $50 million
2010, $85 million in FY2011, and $105
annual y for FY2013-FY2017. [Sec. 9005]
annual y for FY2013-FY2017. [Sec. 9005]
mil ion in FY2012, each to remain available
until expended. [Sec. 9005]
Biodiesel Fuel Education Program.
5
Authorizes mandatory funding of $1 million
5
No mandatory funding is authorized.
0
$1 million in each of FY2008-2012. [Sec.
annual y for FY2013-FY2017. [Sec. 9006]
Authorizes to be appropriated $2 million
9006]
annual y for FY2013-FY2017. [Sec. 9006]
Rural Energy For America Program
255
Authorizes mandatory funding of $48.2 million
241
No mandatory funding is authorized.
0
(REAP). $55 million in FY2009, $60
annual y for FY2013-FY2017. Authorizes to be
Authorizes to be appropriated $45 million
mil ion in FY2010, and $70 million in each
appropriated $20 million annual y for FY2013-
annual y for FY2013-FY2017. [Sec. 9007]
of FY2011-2012, available until expended.
FY2017. [Sec. 9007]
[Sec. 9007]
CRS-13


2008 farm bill
2012 farm bill
Est. cost
S. 3240
H.R. 6083
to extend
Program in P.L. 110-246 without
$ million
$ million
$ million
baseline beyond FY2012
(5 yrs.)
Provision
(5 yrs.)
Provision
(5 yrs.)
Biomass Research and Development.
118
Authorizes mandatory funding of $26 million
130
No mandatory funding is authorized.
0
$20 million in FY2009, $28 million in
annual y for FY2013-FY2017. Authorizes to be
Authorizes to be appropriated $20 million
FY2010, $30 million in FY2011, and $40
appropriated $30 million annual y for FY2013-
annual y for FY2013-FY2017. [Sec. 9008]
mil ion in FY2012, available until
FY2017. [Sec. 9008]
expended. [Sec. 9008]
Biomass Crop Assistance Program.
120
Authorizes mandatory funding of $38.6 million
193
No mandatory funding is authorized.
0
An indefinite appropriation (such sums as
annual y for FY2013-FY2017. [Sec. 9010]
Authorizes to be appropriated $75 million
necessary) of mandatory funds for
annual y for FY2013-FY2017. [Sec. 9010]
FY2008-2012. [Sec. 9011]
Horticulture and Organic Agriculture
Farmers’ Market Promotion
33
Increases mandatory funding to $20 million
100
Increases mandatory funding to $20 million
100
Program. $3 million in FY2008, $5
annual y (FY2013 through FY2017), and
annual y (FY2013 through FY2017), and
mil ion in each of FY2009-2010, and $10
separately authorizes $20 million discretionary
separately authorizes $10 million discretionary
mil ion in each of FY2011-2012. [Sec.
each year FY2013-FY2017, subject to
each year FY2013-FY2017, subject to
10106]
appropriations. [Sec. 10003]
appropriations. [Sec. 10003]
National Clean Plant Network. $5
20
Authorizes a consolidated program with one
Incorp. Similar to the Senate bill, except that the
Incorp.
mil ion in each of FY2009-2012, to remain
part equivalent to the National Clean Plant
House bill provides mandatory funding of
available until expended. [Sec. 10202]
Network. Authorizes mandatory funding for
$71.5 million in FY2013 and each fiscal year
the combined program of $60 mil ion annual y
thereafter. [Sec. 10012]
for FY2013-2016, and $65 million for FY2017
and thereafter. The former programs annually
had $50 million (Plant Pest and Disease
Management) plus $5 million (National Clean
Plant Network).[Sec. 10007]
National Organic Certification Cost-
22
From Agricultural Management Assistance,
57.5 Repealed.
[Sec. 10004(d)] 0
Share Program. $22 million in FY2008,
provides 50% of $23 million in mandatory CCC
to remain available until expended. [Sec.
funding annual y (FY2013-2017) for organic
10301]
certification cost-share program. [Sec. 11027]
Organic Production and Market
5
Reauthorizes $5 million in mandatory funding
5
Identical to the Senate bill. [Sec. 10004] 5
Data Initiatives. $5 million in FY2008,
(available until expended) and extends annual
to remain available until expended. [Sec.
appropriations authority of $5 million through
10302]
FY2017. [Sec. 10005]
CRS-14


2008 farm bill
2012 farm bill
Est. cost
S. 3240
H.R. 6083
to extend
Program in P.L. 110-246 without
$ million
$ million
$ million
baseline beyond FY2012
(5 yrs.)
Provision
(5 yrs.)
Provision
(5 yrs.)
Market Loss Assistance for
15
No comparable provision.
0
No comparable provision.
0
Asparagus. $15 million in FY2008 for
2004-2007 crops. [Sec. 10404]
Livestock
National Sheep Industry
1
Does not fund the National Sheep Industry
1.5 No
comparable
provision.
0
Improvement Center. $1 million in
Improvement Center, but establishes a
FY2008, to remain available until
competitive grants program for similar
expended. [Sec. 11009]
purposes with $1.5 million of mandatory
funding in FY2013, to remain available until
expended. The National Sheep Industry
Improvement Center may apply. [Sec. 12104]
Agricultural Disaster Assistance
Supplemental agricultural disaster
9,000
SURE is not reauthorized. Other four programs
1,097
Same as Senate bill, except maximum funding
1,020
assistance, including establishing the
are reauthorized (LIP, LFP, ELAP, TAP) with
for ELAP is $20 million annually. [Sec. 1501]
Agricultural Disaster Relief Trust Fund.
mandatory funding from the Commodity Credit
SURE, LIP, LFP, ELAP, TAP. Authorized
Corporation for FY2012 through FY2017.
for FY2008-FY2011. [Sec. 12033 and
Maximum funding for ELAP is $5 million
Sec. 15101]
annual y. [Sec. 1501]
Miscellaneous
Outreach and Technical Assistance
75
Provides $5 million annual y in mandatory
25
Provides $10 million annually in mandatory
50
for Socially Disadvantaged Farmers
funding, and authorizes $20 million annually,
funding, and authorizes $20 million annually,
or Ranchers. $15 million in FY2009, and
subject to annual appropriations for FY2013-
subject to annual appropriations for FY2013-
$20 million each year for FY2010-2012.
FY2017. [Sec. 12001]
FY2017. [Sec. 12201]
[Sec. 14004]
Determination on Merits of Pigford
100
No comparable provision.
0
No comparable provision.
0
Claims. $100 million in FY2008, available
until expended. [Sec. 14012]
Source: Compiled by CRS from Table 2 of this report and corresponding entries for S. 3240 and H.R. 6083 in CRS Report R42552, The 2012 Farm Bill: A Comparison of
Senate-Passed S. 3240 and the House Agriculture Committee’s H.R. 6083 with Current Law
.
Notes: “Incorp.” indicates that the provision without baseline was incorporated into another provision that contains mandatory funding. The share that is for the purposes
of the original program is unknown or not determined.. This makes computing a definitive total for the House and Senate columns impossible.
CRS-15

Expiring Farm Bill Programs Without a Budget Baseline


Author Contact Information

Jim Monke

Specialist in Agricultural Policy
jmonke@crs.loc.gov, 7-9664


Acknowledgments
Craig Jagger provided valuable expertise on the subject and helpful peer review.
Congressional Research Service
16