The Congressional Budget Office (CBO) last week released a new baseline for USDA mandatory funded programs – that will not likely take place until May it appears. The report forecasts the projected cost of certain programs over the next 10 years. CBO is forecasting the Price Loss Coverage (PLC) program, which triggers payments when market prices fall below certain reference prices, will cost $28 billion from 2024 through 2034. The previous 2023-2033 forecast, issued last May, projected $33.1 billion. The Agriculture Risk Coverage program is now projected to cost $15.6 billion, down from the $28.4 billion forecast for 2023-33.
CBO also raised its forecast for spending through the Commodity Credit Corporation (CCC) by about $5 billion over the next 10 years. Key leaders have suggested capping or eliminating USDA’s Section 5 authority under the CCC in the next farm bill, which would give Congress a greater say in how the funds are used by any given administration and could save $8 billion over 10 years.
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