CBO Provides Estimates of Impacts of Senate Farm Bill Draft

April 24, 2012

By: Jim Wiesemeyer, Pro Farmer Washington Consultant

via a special arrangement with Informa Economics, Inc.

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

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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.