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Updated December 4, 2023
Farm Bill Primer: Budget Dynamics
Congress is considering a new farm bill because provisions
by $73 billion over 10 years under a budget resolution
authorized in the 2018 farm bill (P.L. 115-334) began
during a budget surplus. The 2008 farm bill was budget
expiring at the end of FY2023 (CRS Report R47659,
neutral, although it added $9 billion to outlays over 10
Expiration of the Farm Bill ). In November 2023, Congress
years by using offsets from a tax-related title. The 2014
enacted a one-year extension to cover FY2024 and crop
farm bill had a negative score, reducing spending by $16
year 2024 (P.L. 118-22, Division B, §102). From a budget
billion over 10 years. The 2018 farm bill was budget neutral
perspective, many programs are assumed to continue.
and offset reductions in some titles with increases in others.
Farm Bills from a Budget Perspective
CBO’s May 2023 Baseline
Federal spending for agriculture is divided into two main
In May 2023, CBO released the baseline that will be used to
categories—mandatory and discretionary spending:
score bills during the 2023 legislative session.
• Mandatory spending is authorized primarily for the
Farm bills have 5-year and 10-year budget projections
farm commodity programs, conservation, crop
according to federal budgeting practices. Converting the
insurance, and the nutrition assistance programs. A farm
May 2023 baseline into farm bill titles and adding funding
bill authorizes outlays for mandatory programs when the
indicated in law for other farm bill programs, CRS
law is enacted and follows budget enforcement rules.
estimates that the baseline for all farm bill titles is $725
•
billion over 5 years (FY2024-FY2028) and $1,463 billion
Discretionary appropriations are authorized, but not
over 10 years (FY2024-FY2033, Figure 1).
provided, for most other programs, including rural
development, research, and credit programs. A farm bill
Figure 1. Farm Bill Titles with Mandatory Baseline
sets program parameters. Funding may be provided in
10-year projected outlays, FY2024-FY2033, bil ions of dol ars
subsequent appropriations acts that follow separate
budget enforcement rules.
Some farm bill programs have received both types of
funding. Discretionary appropriations are the primary
source for many programs, but mandatory spending usually
dominates the farm bill budget debate and is the focus here.
Importance of Baseline to the Farm Bill
The Congressional Budget Office (CBO) baseline is a
projection at a particular point in time of what future federal
mandatory spending would be under the assumption that
current law continues. The baseline is the benchmark
against which proposed changes in law are measured.
When a bill is proposed that would affect mandatory
spending, the score (cost impact) is measured in relation to
the baseline. Changes that increase spending relative to the
baseline have a positive score; those that decrease spending
Source: Created by CRS using Congressional Budget Office (CBO)
relative to the baseline have a negative score.
May 2023 Baseline for the five largest titles and amounts indicated in
law for programs in other titles.
Increases in a bill’s total cost beyond the baseline may be
The relative proportions of farm bill spending have shifted
subject to budget constraints, such as pay-as-you-go
over time. In the 2023 projection, the nutrition title is 84%
(PayGo) rules. Reductions from the baseline may be used to
of the farm bill baseline, compared with about 76% when
offset costs for other provisions that have a positive score or
the 2018 farm bill was enacted. The increase in the 10-year
used to reduce the federal deficit. The annual budget
baseline for the nutrition title since 2018 is, coincidentally,
resolution determines whether a farm bill is held budget
84%, reflecting consequences of the Coronavirus Disease
neutral or can increase or must decrease spending.
2019 (COVID-19) pandemic, inflation, and administrative
adjustments in the Thrift Food Plan pursuant to the 2018
Recent Farm Bills’ Budget Positions
farm bill. For the non-nutrition agriculture programs in the
Over the past two decades, farm bills have had both
farm bill, current economic projections are that program
positive and negative scores relative to their baselines. The
outlays would be $240 billion over the next 10 years
2002 farm bill had a positive score and increased spending
(Figure 2), $30 billion or 14% greater than the 10-year
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Farm Bill Primer: Budget Dynamics
projection at enactment in 2018 (CRS In Focus IF12047,
Farm Bill Primer: What Is the Farm Bill?).
Figure 2. Agriculture Programs with Baseline in the Farm Bill
10-year projected outlays (excluding the nutrition title), FY2024-FY2033, millions of dol ars
Source: Created by CRS using the CBO May 2023 baseline and amounts indicated in law for programs in other titles.
Extension of the Farm Bill in 2024
Unobligated balances may be cancelled or repurposed
as a budgetary offset for additional spending in new
The one-year farm bill extension for FY2024 and the 2024
legislation. In FY2019 and FY2020, the Trump
crop year authorizes programs with a mandatory spending
Administration increased outlays by over $25 billion
baseline and provides new mandatory funding for some
to producers affected by retaliatory tariffs. From
programs without a baseline. For the programs with a
FY2020 to FY2022, Congress and the White House
baseline, Congress did not need to offset the spending.
provided supplemental pandemic assistance of over
Programs Without Baseline
$30 billion to farms and over $60 billion for nutrition
assistance. Since 2018, Congress has authorized more
Twenty-one programs received mandatory funding in the
than $19 billion of ad hoc disaster assistance for
2018 farm bill but did not have a baseline beyond their
agricultural losses. In 2023, the Biden Administration
expiration in FY2023. The farm bill extension for FY2024
announced $2 billion for trade promotion and food aid
provided $177 million of one-year mandatory funding to 19
from its authority to use the Commodity Credit
of the programs without baseline, with an offsetting
Corporation. In addition, P.L. 117-169 (referred to as
rescission of unobligated balances from another program.
the Inflation Reduction Act of 2022, or IRA) added
(CRS In Focus IF12115, Farm Bill Primer: Programs
over $17 billion for conservation and energy title
Without Baseline Beyond FY2024).
programs. The IRA funding is not regular farm bill
Effect of Supplemental Funding
funding; new budget authority is provided until
FY2026, and outlays may not occur after FY2031 (
Supplemental spending is not part of the baseline but
may be discussed because of its size in recent years.
Figure 3).
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Farm Bill Primer: Budget Dynamics
Figure 3. Conservation Funding: Baseline in the Farm
Jim Monke, Specialist in Agricultural Policy
Bill and Funding in the Inflation Reduction Act of 2022
IF12233
Source: Created by CRS using the May 2023 CBO baseline.
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
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reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
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wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF12233 · VERSION 6 · UPDATED