Farm Bill: Budget and Policy Issues
An update yesterday at the National Sustainable Agriculture Coalition (NSAC) Blog stated that, “The Congressional Budget Office (CBO) released its first snapshot of the budget projections for 2014 and beyond on Tuesday. The snapshot includes projections for federal farm bill spending. The final version of the projections, which will be published in late March, will be the version that is used for determining the costs and savings of competing budget resolutions and farm bill proposals to be debated later this year. As a general rule, though, there are only rarely big differences between the early snapshot and the final projections.”
The NSAC update noted that, “The 2012 debate on a new farm bill used the March 2012 CBO baseline as its measuring rod. Compared to that March 2012 baseline, several items stand out in the new version.
“First, the Supplemental Nutrition Assistance Program (SNAP), better known as the food stamp program, is projected to decline in cost by almost $8 billion in the next five years and by nearly $12 billion over the coming decade, relative to last year’s projection. Those are decreases of 1.9 and 1.5 percent, respectively.”
“Second, CBO projects a decline in the cost of the crop insurance program, by close to $3 billion over the next decade relative to last year’s projection. The insurance subsidies would still cost close to $9 billion a year, according to CBO.”
Yesterday’s NSAC analysis pointed out that, “Third, the current suite of commodity programs are projected to increase in cost by $1.6 billion over the next 10 years relative to last year’s projection. The increase is largely due to projected increases in Average Crop Revenue Election (ACRE) payments for corn, soybeans, and wheat and projected increases in counter cyclical payments for cotton. Dairy program costs drop dramatically after the current one-year extension of the Milk Income Loss Contract (MILC) program — included as part of the short-term farm bill extension enacted at the beginning of January — expires at the end of this year.”