CBO Provides Estimates of Impacts of Senate Farm Bill Draft

April 24, 2012 12:18 AM
 

via a special arrangement with Informa Economics, Inc.

Measure would reduce direct spending by $26.4 billion over 2013-2022 period


NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


Soybeans, dry peas and lentils would get more payments under the proposed Senate farm bill than current policy, based on Congressional Budget Office (CBO) estimates of the draft measure. Wheat and upland cotton would lose the most in payments. Link to full report.

The Senate draft bill would reduce direct spending by $26.4 billion from the current baseline during fiscal years 2013 to 2022, the CBO said Monday. The Senate Agriculture Committee had set a target of a net $23 billion reduction in mandatory spending.

 

The three major areas of savings over 10 years are $19.5 billion in commodities, $6.4 billion in conservation programs and $4.2 billion in the Supplemental Nutrition Assistance Program (SNAP). Some of that savings would be offset by about $4.2 billion in additional mandatory spending.

 

On Monday, several groups sent a letter (link) to Senate Ag Chairwoman Debbie Stabenow urging a postponement of Wednesday's scheduled markup, due to concerns they have regarding the rice, cotton, peanut and other provisions of the farm bill draft.

Changes in Commodity Payments Under Title I of Senate Draft Farm Bill

Crop

In millions of dollars, by fiscal year

 

2013-2017

2013-2022

Corn

-2,244

-5,540

Sorghum

-203

-485

Barley

-275

-628

Oats

-5

-13

Total Feed Grains

-2,726

-6,666

Soybeans

518

1,515

Wheat

-2,869

-6,728

Upland Cotton

-2,628

-6,077

Rice

-1,374

-3,054

Peanuts

-157

-423

Other Oilseeds

14

45

Dairy

-153

-71

Wool

0

0

Mohair

0

0

Honey

0

0

Dry Peas

7

17

Lentils

15

25

Small Chickpeas

0

0

Large Chickpeas

0

0

Total Change in Commodity Pymts

-9,353

-21,416

 

Source: Congressional Budget Office.

Note: Components may not sum to totals because of rounding.

a. Change in Commodity Payments represents the net change from: (1) elimination of direct payments, countercyclical payments, and average crop revenue election payments;

(2) payments under the agricultural risk coverage program; (3) marketing loan benefits; and, (4) dairy basic and supplemental margin protection.

 


 

NOTE: This column is copyrighted material, therefore reproduction or retransmission is prohibited under U.S. copyright laws.


 


 

 

 

 

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