The proposed $1 trillion farm bill for the next decade might see a 12% cut in the commodity programs, according to estimates from the Congressional Budget Office (CBO).
Farm Bill
The 2018 farm bill provided a policy for an overdue update that hadn’t been done since 1975. However, the CBO’s forecasts for farm bills are often inaccurate, warns Jim Wiesemeyer, Pro Farmer policy analyst. The Supplemental Nutrition Assistance Program (SNAP), which is the farm bill’s largest funded program, saw an 82% increase in spending from the 2018 farm bill.
The House Ag Committee estimates that CBO’s 2023 baselines compared to the 2018 farm bill will cause changes in the following programs over the five-year period: commodity programs, a 12% decrease; conservation, a 19% increase; nutrition, an 82% increase; and crop insurance, a 26% increase. However, CBO’s latest baseline provides no built-in ad hoc for these programs, which might put pressure on farm-state lawmakers to continue the billions in ad hoc aid.
Commodity Programs
According to USDA, the three main commodity programs include Price Loss Coverage (PLC), Agriculture Risk Coverage (ARC), and the Marketing Assistance Loan Program.
According to National Sustainable Agriculture Coalition in its article about Farm Bill, the Commodities title covers price and income support for the farmers who grow widely-produced and traded non-perishable crops, like soybeans, corn, rice, and wheat– as well as dairy and sugar. The title also includes agricultural disaster assistance.
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Effects of Commodity Programs Reduction
Commodity programs are created to help farmers in managing risk and stabilize commodity prices by providing subsidies, loans, and other forms of assistance. When commodity program support decline by 12%, it means that the amount of financial aid given to farmers through these programs will be decreased by 12%.
A 12% decrease in commodity program support could result in reduced income for farmers and increased financial pressure on them, especially those who rely heavily on government support. It could also lead to a decrease in the number of commodities produced, which could ultimately impact the overall availability and pricing of certain goods.
In conclusion, the proposed $1 trillion farm bill for the next decade might see a 12% cut in commodity programs. However, the CBO’s forecasts for farm bills are often inaccurate, warns Jim Wiesemeyer. The largest funded program, SNAP, saw an 82% increase in spending from the 2018 farm bill. The disaster programs received billions of dollars in the past ten years, with the largest spike reported in 2020 at $45 billion.
