What is in this article?:
- Some Farm Bill Programs Are Destined to Expire in 2012
- On the chopping block?
- Five conservation programs were initially funded at $2.105 billion, but would require $3.2 billion to continue in the next farm bill
- There are 37 programs in the 2008 Farm Bill that will expire in a couple years because there is no guaranteed funding after September 2012
There are 37 programs in the 2008 Farm Bill that will be expiring in a couple years because there is no guaranteed funding after September 2012. Should they expire like worthless options at the Board of Trade or should there be an effort to fund them at any cost? That’s totally up to you – and the US taxpayer.
As the political winds threaten to keep a tighter grip on the U.S. Treasury purse strings, there will be many programs in the federal government that will disappear for lack of funding. And at least three dozen of those may quickly be identified in the USDA budget. The Congressional Research Service (CRS) has identified the programs, which cost the taxpayer between $9 and $10 billion to operate. The CRS report says the 37 programs had received mandatory funding for the life of the 2008 Farm Bill, but there is no budget baseline that carries them beyond 2012, such as public feeding programs, direct payments or crop insurance. Their cost is about 4% of the $283 billion five-year farm bill, or 11% of the cost if the $100 billion nutrition title is removed.
CRS Farm Specialist Jim Monke says the largest one is the permanent disaster assistance program, which was budgeted for $4.8 billion in the farm bill, but would be continued at $3.7 billion based on estimates made last March. There are also five conservation programs that were initially funded at $2.105 billion, but would require $3.2 billion in the next farm bill if they were continued.
“If selected for continuation, would the program continue at its current higher cost, or be redesigned in the next farm bill to cost less? Thus, which of the two approaches is better depends on whether one believes Congress would change program parameters, for example, to reduce a program that has become more expensive than initially expected, or whether Congress would continue current program provisions and pay a higher cost than in 2008 when extending a program.”