U.S. House Agriculture Committee Chairman Glenn Thompson of Pennsylvania said the release of the Congressional Budget Office’s score of the proposed Farm, Food, and National Security Act of 2024 shows more needs to be done to bring that bill to completion — including cooperation from Senate Democrats.
“Bringing about a five-year farm bill is a long process, one filled with multiple steps and a lot of hard work,” Thompson said Friday. “Today’s score from CBO is part of that process, but shows me there is still more to be done to make certain the bill — one that has been consistently praised by those across the agriculture value chain — can be brought across the finish line.”
Thompson said of how the Budget Office computed their estimate “Unfortunately, the score relies on the same methodology that has led CBO to underestimate Commodity Credit Corporation (CCC) outlays by more than $60 billion over the past seven fiscal years. I will continue to work with the Budget Committee and CBO to bring about a clear-eyed, defensible interpretation of restricting Section 5 discretionary authority. ”
He also criticized the Farm Bill process going on in the Senate.
Senate Ag Committee Chair Debbie Stabenow has released a “framework” listing dozens of proposals offered by lawmakers that are related to the farm bill discussion- but has yet to craft an actual bill that her Committee could consider. She quickly criticized Thompson and the House Ag Committee passed bill when news of the CBO Score was released. “Today’s score from CBO shows once again that the House Republican proposal is not paid for and relies on magic math and wishful thinking.
“To reach a bipartisan agreement, we need to have a real negotiation on how to pay for our investments in the Farm Bill. To do that, Republican colleagues need to join me at the negotiating table in a serious way.
“My door is open, and I have demonstrated a willingness to think creatively and bring in new investments outside of the Farm Bill. If we work together, I know we can finish our work, but we are running out of time. I urge my colleagues to join me.”
Chairman Thompson did offer a response within his reaction to the CBO Score on Friday.
“The continuous grandstanding and inaction of Senate Democrats is not working to honor the men and women who feed, fuel, and clothe our great nation,” Thompson said. “I implore Chairwoman (Debbie Stabenow, D-Mich.) to release text so we can begin good faith conversations on producing a bicameral, bipartisan farm bill before years’ end.”
Time is running short if a 2024 Farm Bill is to be completed in the current calendar year. The House will not return until after Labor Day and much of the floor time left in September will be needed to debate and pass the seven remaining Appropriations measures to fund the federal government for the new fiscal year that starts October first. That leaves little if any floor time for consideration of the House Ag Committee passed Farm Bill. And there’s even more work to be done in the Senate if they want to have a bill that could go to conference between the House and the Senate.
There has been some talk of getting a Farm Bill done in a lame duck session of Congress after the November elections- but that’s a true “hail Mary” to become a reality.
More likely is a second extension to the 2018 Farm Law- we operate now under a one year extension that expires on September 30, 2024- and a another one year extension will kick the decisions on Farm Policy to a new Congress that will convene in January.
A second extension becomes more problematic as the value of the Title One farm safety net reference prices that were set in the 2014 Farm Law have been eroded by inflation and more. The 2024 Farm Bill proposal of the House Ag Committee addresses those inadequate support levels- but that costs a lot of money and is a part of the CBO Score showing more money needed than is available.
Below is the full statement from Chairman Thompson on his Farm Bill proposal in relationship to the CBO Score of that measure.
Following the the release of the Congressional Budget Office’s (CBO) score of the Farm, Food, and National Security Act of 2024, House Committee on Agriculture Chairman Glenn “GT” Thompson (PA-15) issued the following statement:
“Bringing about a five-year farm bill is a long process, one filled with multiple steps and a lot of hard work. Today’s score from CBO is part of that process, but shows me there is still more to be done to make certain the bill—one that has been consistently praised by those across the agriculture value chain—can be brought across the finish line.
“Unfortunately, the score relies on the same methodology that has led CBO to underestimate Commodity Credit Corporation (CCC) outlays by more than $60 billion over the past seven fiscal years. I will continue to work with the Budget Committee and CBO to bring about a clear-eyed, defensible interpretation of restricting Section 5 discretionary authority.
“The Farm, Food, and National Security Act was built by rural America, for rural America. Its historic investments in the farm safety net, biosecurity, trade promotion, agricultural research, conservation, and so much more deliver certainty in times of crisis, when disastrous regulatory and Democratic policies are eroding the American dream. The continuous grandstanding and inaction of Senate Democrats is not working to honor the men and women who feed, fuel, and clothe our great nation. I implore Chairwoman Stabenow to release text so we can begin good faith conversations on producing a bicameral, bipartisan farm bill before years’ end.”
Background:
The Congressional Budget Office’s May 2023 baseline of USDA Farm Programs forecasts outlays of $1 billion per year in ‘Other Administrative CCC Spending,’ totaling $10 billion over ten years. That spending is primarily attributed to authority granted from Section 5 of the CCC Charter Act. The February 2024 baseline update forecasts annual outlays that range from $1 billion to $3 billion and total $17 billion over ten years. The June 2024 baseline mirrors the falling outlays described in the February 2024 baseline update, with a different total amount of $12 billion over ten years. Despite three significant changes across 13 months to CBO’s baseline, projections of spending under Section 5 for the next ten years remain significantly lower than historic outlays would suggest.
From fiscal years 2012 to 2017, Congress restricted the Secretary’s discretionary use of the CCC Charter Act. Since the restriction was dropped in fiscal year 2018, spending under Section 5 has averaged $10.7 billion annually. The Trump Administration used Section 5 to spend $28 billion on the Market Facilitation Program (MFP) in response to Chinese retaliatory tariffs and $20.5 billion on the Coronavirus Food Assistance Program (CFAP) in response to pandemic-related market disruption. This spending resulted in the need for $14 billion in off-cycle replenishment authorized by the Coronavirus Aid, Relief, and Economist Security (Cares) Act. The Biden Administration has funded at least 15 programs across various mission areas, totaling more than $12 billion. Despite a modest increase in the February 2024 baseline update, CBO’s forecasts of outlays since 2018 have been off by more than $60 billion.
Even when eliminating the completely unpredictable event that was COVID-19, an average of outlays over the six years since Section 5 authority was restored yields annual average Section 5 outlays of $7.3 billion. Considering a 10-year history, annual average Section 5 outlays are $6.4 billion, including four years of $0 in outlays while Section 5 authority was eliminated.
With outlays under authority granted by Section 5 of the CCC since 2018 averaging anywhere from $6.4 billion to $10.7 billion, and outlays in the June 2024 baseline averaging $1.2 billion, along with clear indications from both political parties of the intent to fully maximize spending under this authority, the forecast of Section 5 outlays does not match reality.
