CBO Scores $867 Billion Farm Bill As Budget Neutral

The Congressional Budget Office (CBO) released their score of the Agriculture Improvement Act of 2018 (HR 2), saying the legislation will spend $428 billion over the 2019-2023 period and a total of $867 billion over 10 years (2019-2028). Outlays under Title I (commodity programs) are expected to rise $263 million over 10 years while conservation program outlays are seen falling $6 million. As for specific commodity program provisions, CBO estimated the option for farmers to pick whether they want to be in the Ag Risk Coverage (ARC) or Price Loss Coverage (PLC) program starting with the 2021 crop year would boost outlays by $153 billion over 10 years. Changes made to the PLC program would increase outlays by $137 million compared to the baseline, CBO said, while ARC outlays are expected to fall $186 million; modified loan rates in the bill would increase outlays $136 million. Allowing farmers to participate in the Dairy Risk Management and Livestock Gross Margin insurance program on the same production would increase outlays $123 million. Under conservation programs, the shifts in the Conservation Reserve Program (CRP) result in no change in outlays over the 10-year period while changes to the Conservation Stewardship Program (CSP) would reduce outlays by $12.4 billion over that period compared to the baseline. However, outlays under the resulting changes to CSP and Environmental Quality Incentives Program (EQIP) would boost outlays $8.45 billion over the 2019-2028 period.