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Deficit Reduction: The 2014 farm bill
Story Date: 2/3/2014
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Source: US HOUSE COMMITTEE ON AGRICULTURE, 1/31/14
In 2011, the House and Senate Agriculture Committees set a goal of cutting $23 billion from agriculture programs. This Farm Bill ensures that, including sequester, the bill yields a total of $23 billion in cuts to program spending, meeting the committees’ deficit reduction goal.
Farm Bill Savings
The Farm Bill achieves major reform by ending direct payment subsidies, accounting for the bulk of the Farm Bill’s spending cuts.
Savings are achieved in nutrition programs by addressing fraud and misuse; these changes do not remove anyone from food assistance programs and ensures that every person receives 100% of the benefits they are intended to under the current rules of the program.
Savings in conservation are achieved by streamlining and consolidating 23 programs into 13, while strengthening tools to protect land and water – an approach supported by hundreds of conservation organizations across the country.
Farm subsidy programs were cut far more significantly than any other area of the budget under the Agriculture Committees’ jurisdiction. By comparison, farm subsidy programs were cut by 31%, while nutrition programs were reduced 1%.
Farm Bill Savings Overview (Total: $37.3 billion):
• Farm subsidy programs: $23.3 billion
• Nutrition: $8.0 billion
• Conservation: $6.0 billion
Farm Bill Investments
A portion of the above gross savings is reinvested back into key priorities that help protect famers and create jobs – like strengthening risk management programs, bio-energy production, bolstering research, expanding fruits and vegetables programs. These investments total $14.2 billion.
Farm Bill Investments Overview (Total: $14.2 billion):
• Crop Insurance: $5.7 billion
• Livestock Disaster Assistance: $3.7 billion
• Energy, Research, Rural Development, Fruit and Vegetable, other programs: $3.9 billion
• Dairy program: $912 million
With all spending cuts and investments, the 2014 Farm Bill reduces the deficit by a net total of $23 billion.
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