The 2014 Farm Bill (Agricultural Act of 2014, P.L. 113-79)

March 12, 2014 IF00014



March 12, 2014
The 2014 Farm Bill (Agricultural Act of 2014, P.L. 113-79)
What Is the Farm Bill?
that implementing the 2014 farm bill over the next few
years will require about 150 rulemaking actions, and more
The farm bill is an omnibus, multi-year piece of authorizing
than 40 studies and reports.
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
The 2014 Farm Bill (P.L. 113-79), by Title
other major laws, the farm bill provides a predictable

opportunity for policymakers to comprehensively and
•
Title I, Commodity Programs: Provides support for major
periodically address agricultural and food issues.
commodity crops, including wheat, corn, soybeans, peanuts, rice,
dairy, and sugar, as wel as disaster assistance.
The farm bill is typically renewed about every five years.
•
Title II, Conservation: Encourages environmental stewardship
Seventeen farm bills have been enacted since the 1930s
of farmlands and improved management through land retirement
(2014, 2008, 2002, 1996, 1990, 1985, 1981, 1977, 1973,
and/or working lands programs.
1970, 1965, 1956, 1954, 1949, 1948, 1938, and 1933).
•
Title III, Trade: Provides support for U.S. agricultural export
Farm bills traditionally have focused on farm commodity
programs and international food assistance programs.
program support for a handful of staple commodities—
•
Title IV, Nutrition: Provides nutrition assistance for low-income
corn, soybeans, wheat, cotton, rice, dairy, and sugar. Yet
households through programs including the Supplemental
farm bills have become increasingly expansive in nature
Nutrition Assistance Program (SNAP).
since 1973, with the inclusion of a nutrition title. Other
•
Title V, Credit: Supports federal direct and guaranteed loans to
prominent additions have been conservation, horticulture,
farmers and ranchers.
and bioenergy programs.
•
Title VI, Rural Development: Supports business and
community programs and coordination activities with other local,
The omnibus nature of the farm bill can create broad
state, and federal programs.
coalitions of support among sometimes conflicting interests
•
Title VII, Research, Extension, and Related Matters:
for policies that individually might not survive the
Supports agricultural research and extension programs.
legislative process. This can stir fierce competition for
•
Title VIII, Forestry: Supports forestry management programs
funds. In recent years, more parties have become involved
run by USDA’s Forest Service.
in the debate, including national farm groups, commodity
•
Title IX, Energy: Supports the development of farm and
associations, state organizations, and nutrition and public
community renewable energy systems through various programs,
health officials, as well as advocacy groups representing
including grants and loan guarantees.
conservation, recreation, rural development, faith-based
•
Title X, Horticulture: Supports the production of specialty
interests, local food systems, and organic production.
crops—fruits, vegetables, tree nuts, and floriculture and
ornamental products—through a range of initiatives.
The farm bil provides an opportunity for Congress to
•
Title XI, Crop Insurance: Enhances coverage of the
comprehensively and periodical y address agricultural
permanently authorized federal crop insurance program.
and food issues, and is renewed about every five years.
•
Title XII, Miscellaneous: Other types of programs and
assistance not covered in other bil titles, including provisions
affecting livestock and poultry production.
The Agricultural Act of 2014 (P.L. 113-79, H.Rept. 113-
333), referred to here as the “2014 farm bill,” is the most

recent omnibus farm bill. It was enacted in February 2014
and succeeded the Food, Conservation, and Energy Act of
Without a new farm bill or an extension, the authority for
2008 (P.L. 110-246, “2008 farm bill”). The 2014 farm bill
some farm programs would expire and some would cease to
contains 12 titles encompassing commodity price and
operate altogether unless reauthorized. Also, new activities
income supports, farm credit, trade, agricultural
under some old programs might not be initiated, for lack of
conservation, research, rural development, energy, and
either program authority or available funding. Nutrition
foreign and domestic food programs, among others.
assistance programs require periodic reauthorization if they
are to continue. The farm commodity programs not only
Provisions in the 2014 farm bill reshape the structure of
expire, but would revert to permanent law dating back to
farm commodity support, expand crop insurance coverage,
the 1940s. Many discretionary programs would not have
consolidate conservation programs, reauthorize and revise
statutory authority to receive appropriations in future years.
nutrition assistance, and extend authority to appropriate
Other programs have permanent authority and do not need
funds for many U.S. Department of Agriculture (USDA)
to be reauthorized (e.g., crop insurance), but might be
discretionary programs through FY2018. USDA reports
included to make changes for policy or budgetary goals.
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The 2014 Farm Bill (Agricultural Act of 2014, P.L. 113-79)
What Is the Estimated Cost?
If the 2008 farm bill had continued, CBO estimated that
mandatory outlays would have been $494 billion for the
The farm bill authorizes programs in two spending
five-year period FY2014-FY2018. Including changes in
categories: mandatory and discretionary. Mandatory
revenues, the five-year net impact of the 2014 farm bill on
programs generally operate as entitlements; the farm bill
the deficit is an estimated change of -$5.3 billion (-1.1%)
pays for them using multi-year budget estimates when the
over five years. (On a ten-year basis, the score is -$16.6
law is enacted. Discretionary programs are authorized for
billion, with ten-year projected outlays of $956.4 billion.)
their scope, but are not funded in the farm bill; they are
subject to appropriations. While both types of programs are
The net reduction in expected outlays is the result of some
important, mandatory programs often dominate the farm
titles receiving more funding, while other titles provide
bill debate.
offsets. The titles for farm commodity subsidies, nutrition,
At enactment of the 2014 farm bill, the Congressional
and conservation provide budgetary savings. The titles for
Budget Office (CBO) estimated that the total cost of
crop insurance, research, bioenergy, horticulture, rural
mandatory programs (Table 1) would be $489 billion over
development, trade, forestry, and miscellaneous items
the next five years (FY2014-FY2018).
receive additional funding.
The overwhelming share (99%) of estimated total net
Table 1. 2014 Farm Bill Budget, by Title (P.L. 113-79)
outlays is anticipated for four farm bill titles: nutrition, crop
(millions of dollars, FY2014-FY2018)
insurance, conservation, and farm commodity support
CBO
CBO
Projected
(Figure 1). Of the projected net outlays, about 80% is for
baseline
Score
Outlays
the Supplemental Nutrition Assistance Program (SNAP).
FY2014-
(chg. to
(Baseline
Farm commodity support and crop insurance are expected
2014 Farm Bill Titles
FY2018
baseline)
+ Score)
Share
to account for 13% of mandatory program costs, with
I
Commodities
29,888
-6,332
23,556
4.8%
another 6% of costs in USDA conservation programs.
Programs in all other farm bill titles are expected to account
II
Conservation
28,373
-208
28,165
5.8%
for about 1% of all mandatory expenditures.
III
Trade
1,718
+64
1,782
0.4%
IV
Nutrition
393,930
-3,280
390,650 79.9%
CBO estimated that the total cost of mandatory
V
Credit
-1,011
+0
-1,011 -0.2%
programs in the 2014 farm bil would be $489 bil ion
over the next five years (FY2014-FY2018).
VI
Rural Dev.
13
+205
218 0.04%
VII
Research
111
+689
800
0.2%
Figure 1. Share of Projected Outlays, 2014 Farm Bill
VIII
Forestry
3
+5
8 <0.1%
(billions of dollars, FY2014-FY2018)
IX
Energy
84
+541
625
0.1%
X
Horticulture
536
+338
874
0.2%
XI
Crop Ins.
39,592
+1,828
41,420
8.5%
XII
Misc. (NAP)
705
+839
1,544
0.3%
Total, Direct
493,941
-5,310
488,631 100%
Spending
Source: CRS, using the CBO baseline and 2014 farm bil cost
estimates (http://www.cbo.gov/publication/45049); CBO, “May 2013
Baseline for the 2008 Farm Bil Programs and Provisions, by Title,”
unpublished, May 2013; and “Updated Budget Projections: Fiscal
Years 2013 to 2023,” May 14, 2013 (http://cbo.gov/publication/
44172). Reflects mandatory outlays in mil ions of dol ars (FY2014-
FY2018).

Source: CRS, using CBO’s 2014 farm bil cost estimates
For more information, see CRS Report R43076, The 2014
(http://www.cbo.gov/publication/45049). Shows five-year projected
Farm Bill (P.L. 113-79): Summary and Side-by-Side; CRS
mandatory outlays, FY2014-FY2018, in billions of dollars by title.
Report R22131, What Is the Farm Bill?; and CRS Report
R42484, Budget Issues Shaping the 2014 Farm Bill.
Of the total estimated mandatory outlays, $391 billion is for
Additional CRS reports include CRS Report R41433,
nutrition assistance and $98 billion is mostly geared toward
Expiring Farm Bill Programs Without a Budget Baseline;
agriculture production (Table 1). Within the agriculture
and CRS Report R42442, Expiration and Extension of the
portion, crop insurance outlays are projected to be $41
2008 Farm Bill.
billion over the next five years, conservation $28 billion,
and farm commodity programs $24 billion. The trade title is
Renée Johnson, rjohnson@crs.loc.gov, 7-9588; and
projected to spend $1.8 billion over the next five years,
Jim Monke, jmonke@crs.loc.gov, 7-9664.
horticulture $0.9 billion, research $0.8 billion, and
bioenergy $0.6 billion.

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