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Updated July 8, 2024
Farm Bill Primer: Budget Dynamics
Congress is considering a new farm bill because provisions
by $73 billion over 10 years under a budget resolution
in the 2018 farm bill (P.L. 115-334) began expiring at the
during a budget surplus. The 2008 farm bill was budget
end of FY2023 (CRS Report R47659, Expiration of the
neutral, although it added $9 billion to outlays over 10
2018 Farm Bill and Extension in 2024). In November 2023,
years by using offsets from a tax-related title. The 2014
Congress enacted a one-year extension for FY2024 and the
farm bill had a negative score, reducing spending by $16
crop year 2024 (P.L. 118-22, Division B, §102). On May
billion over 10 years. The 2018 farm bill was budget neutral
23, 2024, the House Committee on Agriculture passed H.R.
with increases in some titles offset by reductions in others.
8467. The Senate Committee on Agriculture, Nutrition, and
Forestry has not released bill text for a farm bill.
CBO’s June 2024 Baseline
In June 2024, CBO released a new baseline that updates
Farm Bills from a Budget Perspective
spending projections. It is the scoring baseline for the
Federal spending for agriculture is divided into two main
remainder of the 118th Congress, though the House
categories—mandatory and discretionary spending:
Committee-passed farm bill markup of H.R. 8467 in May
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2024 reportedly used the May 2023 baseline.
Mandatory spending is authorized primarily for the
farm commodity programs, conservation, crop
Farm bills have 5-year and 10-year budget projections
insurance, and the nutrition assistance programs. A farm
according to federal budgeting practices. Converting the
bill authorizes outlays for mandatory programs when the
baseline into farm bill titles and adding funding indicated in
law is enacted.
law for other farm bill programs, CRS estimates that the
•
baseline for all farm bill titles is $662 billion over 5 years
Discretionary appropriations are authorized for most
(FY2025-FY2029) and $1,364 billion over 10 years
other programs, including rural development, research,
(FY2025-FY2034) (Figure 1).
and credit programs. Farm bills set program parameters.
Funding may be provided in appropriations acts.
For the individual non-nutrition agricultural programs with
Some farm bill programs have received both types of
baseline, current projections are for $265 billion of outlays
funding. Discretionary appropriations are the primary
over the next 10 years (Figure 2).
source for many programs, but mandatory spending usually
dominates the farm bill budget debate and is the focus here.
Figure 1. Farm Bill Titles with Mandatory Baseline
(billions of dollars, 10-year projected outlays, FY2025-FY2034)
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.
Increases in a bill’s total cost beyond the baseline may be
subject to budget constraints, such as pay-as-you-go
(PAYGO) rules. Reductions from the baseline may be used
to offset costs for other provisions that have a positive score
Source: Created by CRS using the Congressional Budget Office
or used to reduce the federal deficit. The annual budget
(CBO) June 2024 baseline for the five largest titles and amounts
resolution determines whether a farm bill is held budget
indicated in law for programs in other titles.
neutral or can increase or must decrease spending.
Extension of the Farm Bill in 2024
Recent Farm Bills’ Budget Positions
The one-year extension of the farm bill covers FY2024 and
Over the past two decades, farm bills have had both
the 2024 crop year. It authorizes the continuation of
positive and negative scores relative to their baselines. The
programs with a mandatory spending baseline and provides
2002 farm bill had a positive score and increased spending
one year of new mandatory funding for some programs that
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Farm Bill Primer: Budget Dynamics
did not have a baseline. For the programs with a baseline,
Congress did not need to offset the authorized spending.
Figure 2. Agriculture Programs with Baseline in the Farm Bill
(millions of dollars, 10-year projected outlays [excluding the nutrition title], FY2025-FY2034)
Source: Created by CRS using the CBO June 2024 baseline and amounts indicated in law for programs in other titles.
Programs Without Baseline
2024 Farm Bill Markup
Twenty-one programs received mandatory funding in the
The budgetary impact of the House Committee-passed bill
2018 farm bill but did not have a baseline beyond their
is difficult to assess since CBO has not released an official
expiration in FY2023. The farm bill extension for FY2024
score. Press coverage has summarized key budgetary
provided $177 million of one-year mandatory funding to 19
estimates the House Committee may have relied on while
of those programs, with an offsetting rescission from
considering H.R. 8467. These include (1) a net increase of
another program (CRS In Focus IF12115, Farm Bill
about $42 billion over 10 years to commodity support
Primer: Programs Without Baseline Beyond FY2024).
programs and crop insurance after an $8 billion offset by
limiting discretionary use of the Commodity Credit
Supplemental Funding Not in the Baseline
Corporation, (2) budget neutral changes to conservation
Supplemental spending is not part of the baseline but may
programs by moving about $13 billon of unobligated
be important because of its size in recent years. In FY2019
funding from the IRA (P.L. 117-169) into the conservation
and FY2020, the Trump Administration increased outlays
title, and (3) increases to activities in the nutrition title and
by over $25 billion, exercising its authority to use the
other titles that are offset by a reduction of about $27
Commodity Credit Corporation for producers affected by
billion by limiting future increases to the Thrifty Food Plan
retaliatory tariffs. From FY2020 to FY2022, Congress and
(TFP) in the nutrition title.
the Trump and Biden Administrations provided over $30
billion to farms and over $60 billion for nutrition in
These amounts are reported to have been scored relative to
pandemic assistance. Since 2018, Congress authorized more
the May 2023 baseline. The 2023 baseline was about $100
than $19 billion of ad hoc agricultural disaster assistance. In
billion higher over 10 years ($1,463 billion) than the June
2023, the Biden Administration announced $2 billion for
2024 baseline (Figure 1). Scoring against the June 2024
trade promotion and food aid. In addition, P.L. 117-169
baseline would likely change the estimates discussed above,
(referred to as the Inflation Reduction Act of 2022, or IRA)
added over $17 billion for conservation and energy title
but not necessarily in an easily predictable manner. The 10-
programs. These amounts are not regular farm bill funding.
year nutrition title baseline decreased by $123 billion since
Unobligated balances may be cancelled or repurposed as a
May 2023, meaning some proposed changes may have a
budgetary offset for spending in new legislation.
smaller effect on the score. The crop insurance baseline
increased by $22 billion, and the farm commodities
baseline increased by a net $4 billion, of which the disaster
programs’ baseline increased by $9 billion while Price Loss
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Farm Bill Primer: Budget Dynamics
Coverage and Agricultural Risk Coverage baselines
Jim Monke, Specialist in Agricultural Policy
decreased by $7 billion over 10 years (and increased over
the first five years). The effect of these budgetary issues
IF12233
would be further clarified by an official score of H.R. 8467.
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
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
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https://crsreports.congress.gov | IF12233 · VERSION 10 · UPDATED