Keystone Today

Following 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 a statement addressing the findings.

"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," said Thompson.

Thompson expressed concerns regarding the methodology used by CBO. "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 aims to address various sectors critical to rural America. "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," Thompson stated.

He also called for action from Senate Democrats. "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 year’s end."

Background information provided highlights discrepancies in CBO's projections over recent years. The May 2023 baseline forecasted $1 billion per year in 'Other Administrative CCC Spending,' totaling $10 billion over ten years. This figure was revised upwards in February 2024 to range between $1 billion and $3 billion annually or $17 billion over ten years. The June 2024 baseline adjusted this total amount downwards again to $12 billion over ten years.

Historical data shows that since fiscal year 2018 when restrictions were lifted on Section 5 discretionary use under CCC Charter Act authority, annual spending averaged $10.7 billion due largely to programs like Market Facilitation Program (MFP) and Coronavirus Food Assistance Program (CFAP). In contrast with these figures are CBO's recent forecasts which have been off by more than $60 billion since 2018.

Even excluding COVID-19-related expenditures yields an average annual outlay significantly higher than current forecasts suggest: $7.3 billion over six years or $6.4 billion over ten years including periods where Section 5 authority was restricted.

With historical averages ranging from $6.4 billion up through $10.7 billion compared against current projections averaging just $1.2 billion annually according to June 2024 baseline data—despite bipartisan intent towards maximizing this spending—the forecasted figures appear misaligned with reality.