Ag Policy Blog

WASHINGTON, (DTN) -- The House version of the farm bill would increase spending an estimated $33 billion over ten years, mainly due to increases in commodity spending, according to a spending score released Friday.

The Congressional Budget Office released a score for R. 8467, the Farm, Food, and National Security Act of 2024 that the House Agriculture Committee passed in May. The bill was not brought to the House floor for debate before House members recessed for August.

CBO pegged the ten-year cost of the House bill at $1.25 trillion from 2025-2033 period."

CBO said, "Relative to the May baseline, CBO estimates that enacting the bill would increase direct spending by $15.4 billion over the 2025-2029 period."

CBO also said the bill "would increase direct spending relative to CBO's baseline by $33 billion over the 2024-2033 period."

The biggest boost in spending would be in the commodity title where Price Loss Coverage (PLC) would increase in spending $34.9 billion from 2024-2033 and Agricultural Risk Coverage (ARC) would go up $9.8 billion.

Those higher costs would be offset by a freeze in the Supplemental Nutrition Assistance Program (SNAP) "Thrifty Food Plan" that CBO scores as $29.4 billion in savings.

House Agriculture Committee Chairman Glenn "GT" Thompson, R-Pa., immediately expressed dissatisfaction with the score because it did not provide the savings that he believes should come from suspending Section 5 of the Commodity Credit Corporation (CCC) Charter Act.

CBO noted that the House Republican-written bill would suspend Section 5, "which gives the Secretary of Agriculture broad authority to spend CCC funds to support agricultural prices and to take other steps that affect the consumption or supply of agricultural commodities."

But CBO added, "Under the May 2023 baseline, CBO projects that USDA will spend $9 billion over the 2025-2033 period using that authority."

"However, CBO expects that if the Section 5 authority was revoked, USDA would use authority provided under Section 32 of the Agricultural Adjustment Act of 1935 (which also authorizes USDA to make payments to farmers) to fund a portion of those activities that under current law would have been funded under Section 5.

"In that case, CBO estimates that $1.8 billion of additional direct spending would occur under Section 32 authority over the 2025-2033 period, for a net reduction in direct spending of $7.2 billion over that period.

"Because the bill language could be interpreted in multiple ways, CBO cannot determine whether enacting Section 1608 would prevent USDA from spending funds under its Section 5 authority. In the absence of specific information, CBO used a 50% probability that enacting the section would eliminate USDA's ability to use that spending authority.

"On that basis, CBO estimates that enacting Section 1608 would reduce direct spending by $3.6 billion over the 2025-2033 period."

Thompson had counted on CBO boosting the savings on the CCC provision to as high as $50 billion over ten years.

In a news release, Thompson said, "Bringing about a five-year farm bill is a long process, one filled with multiple steps and a lot of hard work. Today's score from CBO is part of that process, but shows me there is still more to be done to make certain the bill -- one that has been consistently praised by those across the agriculture value chain -- can be brought across the finish line."

"Unfortunately, the score relies on the same methodology that has led CBO to underestimate Commodity Credit Corporation (CCC) outlays by more than $60 billion over the past seven fiscal years. I will continue to work with the Budget Committee and CBO to bring about a clear-eyed, defensible interpretation of restricting Section 5 discretionary authority," Thompson said.

"The Farm, Food, and National Security Act was built by rural America, for rural America. Its historic investments in the farm safety net, biosecurity, trade promotion, agricultural research, conservation, and so much more deliver certainty in times of crisis, when disastrous regulatory and Democratic policies are eroding the American dream.

"The continuous grandstanding and inaction of Senate Democrats is not working to honor the men and women who feed, fuel, and clothe our great nation. I implore (Senate Agriculture Committee) Chairwoman Stabenow, (D-Mich.) to release text so we can begin good faith conversations on producing a bicameral, bipartisan farm bill before years' end."

Thompson wants to use savings from suspending CCC Section 5 to pay for increased farm programs.

Rep. David Scott, D-Ga., the ranking member on the House Agriculture Committee, said, "CBO calculated that the Republican bill includes nearly $33 billion in deficit spending."

Scott continued, "I want to thank the CBO analysts and staff for their hard work over the last two years. The CBO score is the latest evidence that Republicans have problems with their farm bill and will need Democrats to pass it."

"Only by working together can we make progress. Republicans must return to the negotiating table and work with Democrats to craft a truly bipartisan farm bill," Scott said.

"Farmers need a farm bill this year and time is running out. It's time to stop complaining about CBO. It's time to stop blaming delays on appropriations. It's time to stop waiting for the Senate.

"The House does not work for the Senate and their failure to come together should not deter us in the House from moving forward together, Democrats and Republicans. The best way to encourage the Senate is for the House to pass a farm bill before the election. House Democrats are ready to help.

"Republicans can choose to keep pushing a bill that has no future, or to work with Democrats to get a farm bill signed into law this year. That work must start now. Waiting till after the election to make the hard choices is not leadership. That decision would fuel our farmers' frustration with Washington, and jeopardize our chances of success with a dwindling calendar. Farmers deserve better than that and Democrats stand ready to help deliver."

Stabenow said, "Today's score from CBO shows once again that the House Republican proposal is not paid for and relies on magic math and wishful thinking."

"To reach a bipartisan agreement, we need to have a real negotiation on how to pay for our investments in the farm bill," Stabenow said. "To do that, Republican colleagues need to join me at the negotiating table in a serious way."

"My door is open, and I have demonstrated a willingness to think creatively and bring in new investments outside of the farm bill. If we work together, I know we can finish our work, but we are running out of time. I urge my colleagues to join me."

Congressional Budget Office: H.R. 8467, Farm, Food, and National Security Act of 2024 https://www.cbo.gov/…

DTN Ag Policy Editor Chris Clayton contributed to this report.

Jerry Hagstrom can be reached at jhagstrom@nationaljournal.com

Follow him on social platform X @hagstromreport

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