Budget Agreement Includes $79 Billion for Agriculture

May 4, 2001

The funding available in the budget resolution is more certain than that provided in the House passed budget and higher than provided by the Senate budget. Farmers will get an additional $79 billion over the next 11 years under the budget agreement. Of this amount, $5.5 billion is available for additional payments in fiscal year 2001 for the 2001 crop. Additional assistance is available for the 2001 crop from the remaining $73.5 billion if needed.

According to House Agriculture Committee staff, the $73.5 billion is a pool of money that is added to the agricultural baseline that will be available for additional emergency assistance and for the farm bill. According to the staff, the money is not targeted in specific amount by year as is normally done for budgeting purposes, but is rather a pool of funds.

The $79 billion is specifically added to the agriculture budget, unlike the original House budget, which provided funds through a general contingency for all federal programs. The $79 billion compares favorably to the Senate passed budget resolution as well. It is an increase of $15 billion over the $64 billion provided in the Senate passed budget.

The $73.5 billion available over the 2002 - 2011 period is intended to include all mandatory agricultural programs under functions 300 (conservation) and 350 (agriculture). The existing baseline for CCC during the 2002 – 2011 period is $94.7 billion, including conservation payments. Total spending available to agriculture would then be $168.2 billion over the 2002 - 2001 time period.

House Agriculture Committee staff stated that it is the Chairman's intent to have a comprehensive farm spending bill reported out of committee by the August recess. The bill may include the $5.5 billion for the 2001 crop.