U.S. government outlays for farmer safety net programs are expected to be heavily weighed on the Price Loss Coverage (PLC) program in Fiscal Year (FY) 2021 and beyond, according to the Congressional Budget Office (CBO).
CBO expects PLC outlays at $2.03 billion in FY 2019 and $2.23 billion in FY 2020. For FY 2021, those outlays are expected to move up to $5.24 billion and top $7 billion in FY 2022 and 2023, moving below that mark for through FY 2030, but not being any smaller than $5.08 billion in FY 2030. The FY 2020-2030 total is pegged at $62.98 billion.
Outlays under the Ag Risk Coverage (ARC) program are put at $1.06 billion in FY 2019, falling to $750 million in FY 2020 and remaining in a range of $351 million (FY 2024) and $494 million (FY 2030) for a total of $5.2 billion over FY 2020-2030.
As expected, the CBO update does not forecast another Market Facilitation Program (MFP) effort ahead. They estimate the 2018 MFP payments were $8.57 billion in FY 2019 with another $5.11 billion for the 2019 MFP effort. For FY 2020, CBO forecasts $10 million in outlays from the 2018 MFP with $10 billion under the 2019 MFP program.
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