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Updated February 29, 2024
Farm Bill Primer: Budget Dynamics
Congress is considering a new farm bill because provisions
during a budget surplus. The 2008 farm bill was budget
in the 2018 farm bill (P.L. 115-334) began expiring at the
neutral, although it added $9 billion to outlays over 10
end of FY2023 (CRS Report R47659, Expiration of the
years by using offsets from a tax-related title. The 2014
2018 Farm Bill and Extension in 2024). In November 2023,
farm bill had a negative score, reducing spending by $16
Congress enacted a one-year extension for FY2024 and the
billion over 10 years. The 2018 farm bill was budget neutral
crop year 2024 (P.L. 118-22, Division B, §102).
and offset reductions in some titles with increases in others.
Farm Bills from a Budget Perspective
CBO’s February 2024 Baseline
Federal spending for agriculture is divided into two main
In February 2024, CBO released a new baseline that
categories—mandatory and discretionary spending:
updates spending projections. The May 2023 baseline may
•
remain the scoring baseline until a spring baseline is
Mandatory spending is authorized primarily for the
released, at the discretion of the Budget Committees.
farm commodity programs, conservation, crop
insurance, and the nutrition assistance programs. A farm
Farm bills have 5-year and 10-year budget projections
bill authorizes outlays for mandatory programs when the
according to federal budgeting practices. Converting the
law is enacted and follows budget enforcement rules.
baseline into farm bill titles and adding funding indicated in
•
law for other farm bill programs, CRS estimates that the
Discretionary appropriations are authorized, but not
baseline for all farm bill titles is $682 billion over 5 years
provided, for most other programs, including rural
(FY2025-FY2029) and $1,401 billion over 10 years
development, research, and credit programs. A farm bill
(FY2025-FY2034) (Figure 1).
sets program parameters. Funding may be provided in
subsequent appropriations acts that follow separate
Figure 1. Farm Bill Titles with Mandatory Baseline
budget enforcement rules.
(billion dollars, 10-year projected outlays, FY2025-FY2034)
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
relative to the baseline have a negative score.
Source: Created by CRS using the Congressional Budget Office
Increases in a bill’s total cost beyond the baseline may be
(CBO) February 2024 baseline for the five largest titles and amounts
subject to budget constraints, such as pay-as-you-go
indicated in law for programs in other titles.
(PAYGO) rules. Reductions from the baseline may be used
The relative proportions of farm bill spending have shifted
to offset costs for other provisions that have a positive score
over time. In the 2024 projection, the nutrition title is 82%
or used to reduce the federal deficit. The annual budget
of the farm bill baseline, compared with about 76% in 2018.
resolution determines whether a farm bill is held budget
The increase in the nutrition title since 2018 (73%) reflects
neutral or can increase or must decrease spending.
consequences of the Coronavirus Disease 2019 (COVID-
19) pandemic, inflation, and administrative adjustments in
Recent Farm Bills’ Budget Positions
the Thrifty Food Plan. For the non-nutrition agriculture
Over the past two decades, farm bills have had both
programs, current projections are that outlays would be
positive and negative scores relative to their baselines. The
$253 billion over the next 10 years (Figure 2), $43 billion
2002 farm bill had a positive score and increased spending
or 20% greater than the projection in 2018 (CRS In Focus
by $73 billion over 10 years under a budget resolution
IF12047, Farm Bill Primer: What Is the Farm Bill?).
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Farm Bill Primer: Budget Dynamics
Figure 2. Agriculture Programs with Baseline in the Farm Bill
10-year projected outlays (excluding the nutrition title), FY2025-FY2034, millions of dollars
Source: Created by CRS using the CBO February 2024 baseline and amounts indicated in law for programs in other titles.
Extension of the Farm Bill in 2024
117-169 (referred to as the Inflation Reduction Act of 2022,
or IRA) added over $17 billion for conservation and energy
The one-year farm bill extension for FY2024 and the 2024
title programs. The IRA funding is not regular farm bill
crop year authorizes programs with a mandatory spending
funding; new budget authority is provided until FY2026,
baseline and provides new mandatory funding for some
and outlays may not occur after FY2031 (Figure 3).
programs without a baseline. For the programs with a
baseline, Congress did not need to offset the spending.
Figure 3. Conservation Funding: Baseline in the Farm
Bill and Funding in the Inflation Reduction Act of 2022
Programs Without Baseline
Twenty-one programs received mandatory funding in the
2018 farm bill but did not have a baseline beyond their
expiration in FY2023. The farm bill extension for FY2024
provided $177 million of one-year mandatory funding to 19
of the programs without baseline, with an offsetting
rescission of unobligated balances from another program
(CRS In Focus IF12115, Farm Bill Primer: Programs
Without Baseline Beyond FY2024).
Effect of Supplemental Funding
Supplemental spending is not part of the baseline but may
be discussed because of its size in recent years. Unobligated
balances may be cancelled or repurposed as a budgetary
offset for additional spending in new legislation. In FY2019
and FY2020, the Trump Administration increased outlays
by over $25 billion to producers affected by retaliatory
tariffs. From FY2020 to FY2022, Congress and the White
House provided supplemental pandemic assistance of over
$30 billion to farms and over $60 billion for nutrition
assistance. Since 2018, Congress has authorized more than
$19 billion of ad hoc disaster assistance for agricultural
Source: Created by CRS using the CBO February 2024 baseline.
losses. In 2023, the Biden Administration announced $2
billion for trade promotion and food aid from its authority
Jim Monke, Specialist in Agricultural Policy
to use the Commodity Credit Corporation. In addition, P.L.
IF12233
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Farm Bill Primer: Budget Dynamics
Disclaimer
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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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