Farm Bill Primer: What Is the Farm Bill?

Farm Bill Primer: What Is the Farm Bill?

Updated April 26, 2018
Farm Bill Primer: What Is the Farm Bill?
The farm bill is an omnibus, multi-year law that governs an
programs not only expire but would revert to permanent
array of agricultural and food programs. It provides an
law dating back to the 1940s. Many discretionary programs
opportunity for policymakers to comprehensively and
would not have statutory authority to receive appropriations
periodically address agricultural and food issues.
in future years. Other programs have permanent authority
and do not need to be reauthorized (e.g., crop insurance) but
The farm bill is typically renewed about every five years.
might be included in the bill to make changes for policy or
Seventeen farm bills have been enacted since the 1930s
budgetary goals.
(2014, 2008, 2002, 1996, 1990, 1985, 1981, 1977, 1973,
1970, 1965, 1956, 1954, 1949, 1948, 1938, and 1933).
The 2014 Farm Bill (P.L. 113-79), by Title
Farm bills have traditionally focused on farm commodity

Title I, Commodity Programs: Provides support for
program support for a handful of staple commodities—
major commodity crops, including wheat, corn, soybeans,
corn, soybeans, wheat, cotton, rice, dairy, and sugar. Yet
peanuts, rice, dairy, and sugar, as well as disaster
farm bills have become increasingly expansive in nature
assistance.
since 1973, when a nutrition title was included. Other

Title II, Conservation: Encourages environmental
prominent additions include conservation, horticulture, and
stewardship of farmlands and improved management
bioenergy programs.
through land retirement and/or working lands programs.

Title III, Trade: Provides support for U.S. agricultural
The farm bill provides an opportunity for Congress to
export programs and international food assistance
comprehensively and periodically address agricultural
programs.
and food issues. The 2014 farm bill expires in 2018.

Title IV, Nutrition: Provides nutrition assistance for
low-income households through programs including the
The omnibus nature of the farm bill can create broad
Supplemental Nutrition Assistance Program (SNAP).
coalitions of support among sometimes conflicting interests

Title V, Credit: Offers direct government loans to
for policies that individually might not survive the
farmers and ranchers and guarantees on private lenders’
legislative process. This can lead to competition for funds.
loans.
In recent years, more parties have become involved in the
debate, including national farm groups, commodity

Title VI, Rural Development: Supports rural business
associations, state organizations, nutrition and public health
and community development programs.
officials, and advocacy groups representing conservation,

Title VII, Research, Extension, and Related
recreation, rural development, faith-based interests, local
Matters: Offers various agricultural research and
food systems, and organic production.
extension programs.
The Agricultural Act of 2014 (P.L. 113-79, H.Rept. 113-

Title VIII, Forestry: Supports forestry management
333), referred to here as the “2014 farm bill,” is the most
programs run by USDA’s Forest Service.
recent omnibus farm bill. It was enacted in February 2014

Title IX, Energy: Encourages the development of farm
and succeeded the Food, Conservation, and Energy Act of
and community renewable energy systems through
2008 (P.L. 110-246, “2008 farm bill”). The 2014 farm bill
various programs, including grants and loan guarantees.
contains 12 titles encompassing commodity price and

Title X, Horticulture: Supports the production of
income supports, farm credit, trade, agricultural
specialty crops—fruits, vegetables, tree nuts, and
conservation, research, rural development, energy, and
floriculture and ornamental products—through a range
foreign and domestic food programs, among others.
of initiatives.
Provisions in the 2014 farm bill reshape the structure of

Title XI, Crop Insurance: Enhances coverage of the
farm commodity support, expand crop insurance coverage,
permanently authorized federal crop insurance program.
consolidate conservation programs, reauthorize and revise

Title XII, Miscellaneous: Covers other types of
nutrition assistance, and extend authority to appropriate
programs and assistance, including livestock and poultry
funds for many U.S. Department of Agriculture (USDA)
production.
discretionary programs through FY2018.
Without a new farm bill or an extension, the authority for
Estimated Cost of the 2014 Farm Bill
some farm programs would expire, and some would cease
The farm bill authorizes programs in two spending
to operate altogether unless reauthorized. Also, new
categories: mandatory and discretionary. Programs with
activities under some old programs might not be initiated,
mandatory spending generally operate as entitlements. The
for lack of either program authority or available funding.
farm bill pays for them using multi-year budget estimates
For instance, nutrition assistance programs require periodic
(baseline) when the law is enacted. Programs with
reauthorization if they are to continue. The farm commodity
discretionary spending are authorized for their scope but are
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Farm Bill Primer: What Is the Farm Bill?
not funded in the farm bill. They are subject to annual
FY2016 have become final (actual), estimates are available
appropriations. While both types of programs are important,
for FY2017, and updated projections for FY2018 have
mandatory programs often dominate the farm bill debate.
generally reflected lower-than-expected farm commodity
prices in the near term and lower-than-expected
At enactment in February 2014, the Congressional Budget
participation in SNAP.
Office (CBO) estimated that the total cost of mandatory
programs in the farm bill would be $489 billion over the
The result of these new projections, as of April 2018, is that
five years FY2014-FY2018 (Table 1).
SNAP outlays are projected to be about $26 billion less for
the five-year period FY2014-18 than was expected in
Four titles accounted for 99% of anticipated farm bill
February 2014 (-7%). Crop insurance outlays are projected
mandatory outlays: nutrition, crop insurance, conservation,
to be $10 billion less (-25%) and conservation outlays about
and farm commodity support. The nutrition title comprised
$5 billion less (-19%) for the five-year period. In contrast,
80% of the total for the Supplemental Nutrition Assistance
farm commodity and disaster program payments are
Program (SNAP), and the remaining 20% was mostly
projected to be $13 billion higher than was expected at
geared toward agricultural production.
enactment (+55%) due to lower commodity market prices
Farm commodity support and crop insurance combined to
(which raises counter-cyclical payments) and higher
account for 13% of mandatory program costs, with another
livestock payments due to disasters (Table 1).
6% of costs in USDA conservation programs. Programs in
Overall, the five-year projection of the four major titles of
all other farm bill titles accounted for about 1% of all
the 2014 farm bill is now $455 billion. This is about $28
mandatory expenditures. Although their relative share is
billion less than what was projected at enactment (-6%).
small, titles such as horticulture and research saw their
Figure 1 shows the current projections and actual outlays
share increase compared to the 2008 farm bill.
for the four major titles of the 2014 farm bill.
Table 1. 2014 Farm Bill Projected Outlays, by Title
Figure 1. Projected Outlays, 2014 Farm Bill, by Title
Five-Year Projected Outlays, FY2014-FY2018,
Actuals FY2014-2016, Est. FY2017, April 2018 CBO Baseline
Millions of Dollars
February 2014
April 2018

Actual
At 2014
FY14-16;
Change
enactment
Est. FY17;
since

FY2014-18 Share Proj. FY18 enactment
Nutrition
390,650
79.9%
364,861
-25,789
Crop
41,420
8.5%
31,044
-10,376
insurance
Conservation
28,165
5.8%
22,939
-5,226
Commodities
23,555
4.8%
36,582
+13,027
Subtotal
483,789 99.0% 455,426
-28,363
Trade
1,782
0.4%
1,699
-82

Misc. (NAP)
1,544
0.3%
na
na Source: CRS, using CBO Budget and Economic Outlook, April 2018.

Horticulture
874
0.2%
na
na
Research
800
0.2%
na
na
CRS Products
Energy
625
0.1%
na
na
CRS InFocus 10783, Farm Bill Primer: Budget Issues.
Rural
218
<0.1%
na
na
CRS Report R44913, Farm Bill Primer Series: A Guide to
develop.
Omnibus Legislation on Agriculture and Food Programs.
Forestry
8
<0.1%
na
na
CRS In Focus IF10780, Farm Bill Primer: Programs Without
Credit
-1,011
-0.2%
na
na
Baseline Beyond FY2018.
Total
488,629
100%
na
na
CRS Report R43076, The 2014 Farm Bill (P.L. 113-79):
Source: CRS, using the CBO cost estimate of the Agricultural Act of
Summary and Side-by-Side.
2014 (January 28, 2014), and the CBO Budget and Economic Outlook, “10-
CRS Report RS22131, What Is the Farm Bill?
Year Budget Projections,” April 2018.
Note: “na” indicates that sufficient detail is not available to compile data

for all titles in non-farm bill years.
Current Cost Projections
Renée Johnson, Specialist in Agricultural Policy
Jim Monke, Specialist in Agricultural Policy
In the years since enactment of the farm bill and as part of
its ongoing procedures, CBO has updated its projections of
IF10187
government spending based on new information about the
economy and program participation. Outlays for FY2014 to
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Farm Bill Primer: What Is the Farm Bill?

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