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1 1 (December 27, 2024)

handle is hein.crs/goverva0001 and id is 1 raw text is: 4 Congressional Research Service Informing the legislative debate since 1914 Farm Bill Primer: Budget Dynamics Congress is considering a new farm bill because the 2018 spendi farm bill (P.L. 115-334) and the latest of its two one-year resolu extensions (P.L. 118-158, Division D) begin expiring at the budge end of FY2025 (CRS Report R47659, Expiration of the 10 yea 2018 Farm Bill and Extension for 2025). In 2024, the farm b House Committee on Agriculture ordered reported H.R. billion 8467, and the Senate Agriculture Committee chair with i introduced S. 5335. In 202 Farm s from a Budget Perspective Federal spending for agriculture is divided into two main CBO' categories-mandatory and discretionary spending: The c * Mandatory spending is authorized primarily for the projec farm commodity programs, conservation, crop insurance, and the nutrition assistance programs. A farm Farm bill authorizes outlays for mandatory programs when the accord law is enacted. baseli * Discretionary appropriations are authorized for most estima other programs, including rural development, research, $662 and credit programs. Farm bills set program parameters. billion Funding may be provided in appropriations acts. For in Some farm bill programs have received both types of manda funding. Discretionary appropriations are the primary projec source for many programs, but mandatory spending usually years dominates the farm bill budget debate and is the focus here. Importance of seline to the Farm Bill(billion The Congressional Budget Office (CBO) baseline is a projection at a particular point in time of what future federal mandatory spending would be under the assumption that current law continues. The baseline is the benchmark against which proposed changes in law are measured. When a bill is proposed that would affect mandatory spending, the score (cost impact) is measured in relation to the baseline. Changes that increase spending relative to the baseline have a positive score; those that decrease spending relative to the baseline have a negative score. Increases in a bill's total cost beyond the baseline may be subject to budget constraints, such as pay-as-you-go (PAYGO) rules. Reductions from the baseline may be used to offset costs for other provisions that have a positive score or used to reduce the federal deficit. The annual budget resolution determines whether a farm bill is held budget neutral or can increase or must decrease spending. Recent Farm Bills' Budget Positions The la In the past 25 years, farm bills have had both positive and FY20 negative scores relative to their baselines, according to contin CBO. The 2002 farm bill had a positive score and increased Updated December 27, 2024 ng by $73 billion over 10 years under a budget tion during a budget surplus. The 2008 farm bill was t neutral, although it added $9 billion to outlays over rs by using offsets from a tax-related title. The 2014 ill had a negative score, reducing spending by $16 over 10 years. The 2018 farm bill was budget neutral ncreases in some titles offset by reductions in others. 4, the House committee's bill, H.R. 8467, would have increased the 10-year cost by $28 billion. s June 2024 Baseline urrent baseline used to score the farm bill is the June 2024 CBO baseline. A new CBO baseline with updated tions of spending is expected in the spring of 2025. bills have 5-year and 10-year budget projections ing to federal budgeting practices. Converting the ne update for programs into farm bill titles and adding funding indicated in law for other farm bill programs, CRS tes that the 2024 baseline for all farm bill titles is billion over 5 years (FY2025-FY2029) and $1,364 over 10 years (FY2025-FY2034) (Figure 1). dividual agriculture-related programs with a tory spending baseline, excluding nutrition, current tions are for $265 billion of outlays over the next 10 Figure 2). Figure I. Farm Bill Titles with Mandatory Baseline s of dollars, 10-year projected outlays, FY2025-FY2034) Crop Insurance, $123 Commodities, $73 Conservation, $58 $10 Total: $1,364billion e: Created by CRS using the Congressional Budget Office June 2024 baseline for the five largest titles and amounts d in law for programs in other titles. Extension of the Farm Bill in 2025 test one-year extension of the farm bill covers 25 and the 2025 crop year. It authorizes the nuation of mandatory and discretionary programs; for

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