By Jessica Domel
Multimedia Editor
If new projections from the Congressional Budget Office (CBO) hold true, more funding will be needed for farm safety net programs in the next farm bill, which could mean cuts in other places.
The July 2017 Baseline for Farm Programs report was released at the end of June. It estimates total farm program expenditures from 2016-2026 will be $64.2 billion. That’s up $3.5 billion over CBO’s March 2016 projections.
The report serves as an indicator of program spending available to Congress when crafting the 2018 Farm Bill, assuming existing programs continue without changes, according to the American Farm Bureau Federation (AFBF).
If farm bill negotiators require the next bill be budget neutral, they’ll have to cut spending elsewhere in the multi-billion-dollar bill to cover the increased cost for farm programs.
Congress could also be required to make cuts to all programs in order to have a net reduction.
The CBO baseline report will likely be used to help farm bill crafters estimate program spending knowing they’ll likely have to update spending projections based on a spring 2018 CBO update.
The price of farm programs for some commodities is up in this baseline, according to AFBF, due to low commodity prices. Several years of lower prices mean higher commodity support payments.
The 10-year baselines for peanuts, cotton and soybeans declined, according to AFBF, while corn, wheat, rice and dairy baselines increased in value.
AFBF reports the distribution of farm program payments follows base acreage. Corn, soybeans and wheat represent nearly 70 percent of all program payments. Rice and peanuts represent 18 percent. Sorghum, upland cotton, dairy and other smaller field crops represent 14 percent.
AFBF’s full break down of the CBO report can be found here.
The amount of funding agriculture will see in the next farm bill is still undetermined.
Last month, House Agriculture Committee Chairman Mike Conaway met behind-closed-doors with Budget Committee Chair Diane Black. House aids reported to Politico Conaway saved agriculture from close to $70 billion in proposed budget cuts.
Agriculture programs now face closer to $10 billion in cuts.
Both the House and Senate committees on agriculture continue to host hearings on the next farm bill and its programs.
The House committee will host a farm bill listening session in San Angelo July 31. The time has not yet been announced.