Sequester and the Farm Bill: No Policy Impacts Expected

May 1, 2013 09:36 PM
 

via a special arrangement with Informa Economics, Inc.

Part of farm bill savings to be used to satisfy the sequester, remainder will go to deficit reduction


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


The May Congressional Budget Office (CBO) baseline update, against which the current Senate and House farm bills currently are being scored, is expected to incorporate the sequester, up front, over a nine-year timeframe, sources advise.

Regarding sequester, agriculture is unique in the sense that it is really the only area whose programs are largely not exempt from sequestration and expire during this year. As a result, the CBO has recently decided to reduce the agriculture baselines to account for the full 9-year sequester up front.

The House and Senate Agriculture Committee farm bills are expected to save $38 billion and $23 billion, respectively. Sources indicate those targets will still be met. The only difference is that part of those savings will be used to satisfy the sequester (perhaps up to $8 billion, although no figure has officially been announced) and the remainder will go directly to deficit reduction.

Bottom line: this does not alter anything for the farm bill and it appears to be essentially an accounting issue.


 

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


 


 

 

 

 

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