2024 Farm Bill could increase federal deficit by $33 billion, says CBO

The Farm, Food, and National Security Act of 2024, which was passed by the House Agriculture Committee, is drawing attention due to its potential impact on the federal budget.

The bill is now facing scrutiny after the Congressional Budget Office released its cost estimate, projecting that the proposed legislation could increase the federal deficit by $33 billion over the next decade.

The CBO report, which was released on Aug. 2, highlights the financial impact of reauthorizing and amending key agricultural and conservation programs. The estimate suggests that the bill would result in $15.4 billion in additional direct spending from 2024 to 2029, rising to $33 billion by 2033. This increase would primarily come from expanded agricultural support and conservation efforts administered by the U.S. Department of Agriculture.

“The funding gap could force House Republican leaders to either direct the CBO to change its budget estimate or to modify the legislation, if they want to put the bill on the House floor,” . “At issue is a provision in the bill intended to suspend USDA’s use of section 5 under its Commodity Credit Corporation spending authority, essentially a revolving fund.”

Balancing innovation with budget realities

Despite these fiscal concerns, the bill continues to garner attention for its potential to address modern agricultural challenges. Chairman Glenn Thompson, R-Pennsylvania, of the House Agriculture Committee emphasized the importance of the bill for ensuring the future of American agriculture.

“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 it 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 in a statement following the CBO score release.

Thompson expressed concerns over the CBO’s methodology, pointing out that it had underestimated Commodity Credit Corporation outlays by more than $60 billion over the past seven fiscal years. He emphasized that the Farm, Food, and National Security Act was built by and for rural America and highlighted its historic investments in the farm safety net, biosecurity, trade promotion, agricultural research and conservation.

“This bill delivers certainty in times of crisis, when disastrous regulatory and Democratic policies are eroding the American dream,” Thompson added. He also urged Senate Democrats to take action, saying, “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.”

Advocacy and legislative challenges 

Bipartisan collaboration on the farm bill as it moves forward is extremely important, says Nathan Bowen, vice president of advocacy and public affairs at the Irrigation Association. 

“It’s crunch time,” Bowen says. “If there is to be a new farm bill this year, ag committee leaders need to show real progress on coming together for a bipartisan agreement. The next few weeks will be critical in determining whether that is possible.” 

The Irrigation Association has been actively involved in the advocacy efforts surrounding the farm bill, pushing for policies that support sustainable agricultural practices and efficient water use, according to Bowen. “We hope for positive developments this summer and remain dedicated to influencing the bill in ways that support the wise and efficient use of our water resources, while enhancing the productivity of our nation’s agricultural sector,” Bowen said. 

As lawmakers continue to negotiate, the future of the 2024 Farm Bill remains uncertain. While there is cautious optimism among some stakeholders, others, including Senate Democrats, have yet to release their full proposals. Stabenow has indicated that if a final agreement is not reached by the September deadline, an extension of the current farm bill may be necessary to ensure continued support for the agricultural sector.