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Programs Without Baseline Funding

October 27, 2010
By: Roger Bernard, Farm Journal Policy and Washington Editor
 
 

The following information is a Web Extra from the pages of Farm Journal. It corresponds with the article "Policy Journal" by Roger Bernard. You can find the article in the November 2010 issue. 

 
Thirty-seven provisions in the 2008 farm bill received mandatory budget authority but are not assumed to receive such funding in the budget baseline beyond the end of the farm bill. This issue concerns some observers because a new farm bill would not have funding in the baseline budget to continue these programs. If policymakers want to continue these programs, they will need to pay for the programs with offsets from other sources.
 
The amount of mandatory funds that might be needed to extend these 37 programs is estimated here to be about $9 billion or $10 billion over a five-year period, depending on the approach to estimate costs. Either estimate is about 4% of the $283 billion five-year total cost of the 2008 farm bill, or 11% of the approximately $100 billion five-year cost if the nutrition title is excluded.7 It would cost even more to try to extend them for a longer time so that they could have baseline beyond the next farm bill.
 
The 37 programs:

 

Section
Name of Provision
Comments
Cost to extend
($ million, 5 years)
CBO baseline in March 2010
Farm Commodity Programs
1622
Implementation (of farm commodity programs in Title I)
$50 million in FY 2009 to the Farm Service Agency to help implement the farm bill. Such expenses usually are discretionary.
50
Subtotal, Farm Commodity Programs
50
Conservation
2202
Wetlands Reserve Program
3.04 million acres to be enrolled through
FY2012. The 2008 farm bill added $128-338
million of costs to baseline annually.
2,590
2403
Grassland Reserve Program
1.22 million additional acres to be enrolled
during FY2009-2012. The farm bill added
$63-80 million of costs to baseline annually.
274
2606
Voluntary Public Access and
Habitat Incentive Program
$50 million for the period FY2009-2012,
made available in FY2009.
50
2803
Small Watershed Rehabilitation Program
$100 million in FY2009, to remain available
until expended. Discretionary
appropriations also are authorized.
100
2807
Desert Terminal Lakes
$175 million in FY2008, to remain available
until expended (transfer from USDA to
Dept. of Interior’s Bureau of Reclamation).
175
Subtotal, Conservation
3,189
Trade
1306
McGovern-Dole
International Food for
Education and Child
Nutrition Program
$84 million in FY2009, to remain available
until expended. It also receives annual
discretionary appropriations (e.g., $209
million in FY2010).
84
3206
Local and Regional Food Aid Procurement Projects
$5 million in FY2009, $25 million in FY2010
and FY2011, and $5 million in FY2012.
Results of pilot program to be evaluated.
60
Subtotal, Trade
144
Nutrition
4141
Pilot projects to evaluate
health and nutrition
promotion in the
supplemental nutrition
assistance program
$20 million of mandatory funds in FY2009,
to remain available until expended.
Discretionary appropriations also are
authorized.
20
4142
Study on Comparable
Access to Supplemental
Nutrition Assistance for
Puerto Rico
$1 million of mandatory funds in FY2009, to
remain available until expended.
1
4305
Whole Grain Products (for
school lunches and
breakfasts)
$4 million of Section 32 funds to be made
available in FY2009 (CBO estimate).
4
4307
Survey of Foods Purchased
by School Food Authorities
$3 million in FY2009.
3
4402
Assistance For Community
Food Projects: Healthy
Urban Food Enterprise
Development Center
$1 million in each of FY2009-2011.
Discretionary appropriations are authorized
at $2 million for FY2012.
3
Subtotal, Nutrition
31
Rural Development
6022
Rural Microentrepreneur
Assistance Program
$4 million in each of FY2009-2011 and $3
million in FY2012.
15
6029
Funding of Pending Rural
Development Loan and
Grant Applications
$120 million in FY2008, to remain available
until expended, to reduce a backlog of
approved applications. Discretionary
appropriations usually fund these programs.
120
6202
Value-Added Agricultural
Market Development
Program Grants
$15 million in FY2009, to remain available
until expended. It also receives annual
discretionary appropriations.
15
Subtotal, Rural Development
150
Research
7206
Organic Agriculture
Research and Extension
Initiative
$18 million in FY2009, and $20 million in
each of FY2010-2012.
78
7311
Specialty Crop Research Initiative
$30 million in FY2008, and $50 million in
each of FY2009-2012.
230
7410
Beginning Farmer and Rancher Development
$18 million in FY2009, and $19 million in
each of FY2010-2012.
75
Subtotal Research
383
Forestry
8205
Healthy Forests Reserve
Program
$9.75 million each year for FY2009-2012, to
remain available until expended.
39
Subtotal, Forestry
39
Energy
9002
Biobased Markets Program
$1 million in FY2008, and $2 million each
year for FY2009-2012
9
9003
Biorefinery Assistance
$75 million in FY2009, and $245 million in
FY2010. Discretionary appropriations also
are authorized.
320
9004
Repowering Assistance
$35 million in FY2009, to remain available
until expended. Discretionary
appropriations also are authorized.
35
9005
Bioenergy Program for
Advanced Biofuels
$55 million in each of FY2009-FY2010, $85
million in FY2011, and $105 million in
FY2012, to remain available until expended.
300
9006
Biodiesel Fuel Education
Program
$1 million in each of FY2008-2012.
5
9007
Rural Energy For America
Program (REAP)
$55 million in FY2009, $60 million in
FY2010, and $70 million in each of FY2011-
2012, to remain available until expended.
255
9008
Biomass Research and Development
$20 million in FY2009, $28 million FY2010,
$30 million in FY2011, and $40 million in
FY2012, to remain avail. until expended.
118
9011
Biomass Crop Assistance Program
Indefinite appropriation of mandatory funds
(such sums as necessary) for FY2008-2012.
Outlays in March 2010 CBO baseline of
$283 million in FY2010, $456 million in
FY2011, $409 million in FY2012, $244
million in FY2013, falling to zero by FY2017.
836
(Based on the March 2010 CBPO baseline, but multiplied by 60% on the assumption its costs in future will decrease under USDA's final implementation rules,which are expected to reduce outlays compared to USDA's initial implementation.)
Subtotal, Energy
1,878
Horticulture and Organic Agriculture
10106
Farmers' Market Promotion Program
$3 million in FY2008, $5 million in each of
FY2009-FY2010, and $10 million in each of
FY2011-FY2012.
33
10202
National Clean Plant Network
$5 million in each of FY2009-2012, to
remain available until expended.
20
10301
National Organic Certification Cost-Share
$22 million in FY2008, to remain available
until expended.
22
10302
Organic Production and Market Data Initiatives
$5 million in FY2008, to remain avail. until
expended. Discretionary also is authorized.
5
10404
Market Loss Assistance for Asparagus Producers
$15 million in FY2008 for market loss
payments for the 2004-2007 crop years.
15
Subtotal, Horticulture and Organic Agriculture
95
Livestock
11009
National Sheep Industry Improvement Center
$1 million in FY2008, to remain available
until expended.
1
Subtotal, Livestock
1
Agricultural Disaster Assistance
12033 and 15101
Supplemental agricultural
disaster assistance, including
establishing the Agricultural
Disaster Relief Trust Fund
Authorized for FY2008-FY2011. CBO
estimated in 2008 that the cost would be
$4.846 billion for the program over 4 years,
ending in FY2011 (see also Table 3). The
March 2010 baseline projects $3.680 billion
of outlays for the life of the provision.
3,680
(The March 2010 CBO projection of outlays for the current four-year program. A future program to cover five crop years for a full arm bill, or six years to cover the last year of the current farm bill, would cost relatively more.)
Subtotal, Agricultural Disaster Assistance
3,680
Miscellaneous
14004
Outreach and Technical
Assistance for Socially
Disadvantaged Farmers or
Ranchers
$15 million in FY2009, and $20 million each
year for FY2010-2012.
75
14012
Determination on Merits of
Pigford Claims
$100 million in FY2008, to remain available
until expended. Discretionary
appropriations; $1.15 billion currently is
being sought to fund a legal agreement that
was reached with litigants in February 2010.
100
Subtotal, Miscellaneous
175
Total: 37 provisions in 2008 farm bill without baseline beyond FY2012
9,815
Subtotals by term (or duration) of mandatory funding
Short
20 provisions with short-term use of mandatory funds in 2008 Farm Bill
4,803
Full
17 provisions with full-term use of mandatory funds in 2008 Farm Bill
5,012
Subtotals by type of certainty about costs
Fixed
33 provisions where cost is fixed or known in the farm bill
2,435
Estimated
4 provisions where cost is estimated based on implementation
7,380

 

 

 

 

 

 

 

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FEATURED IN: Farm Journal - November 2010
RELATED TOPICS: Policy

 
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