|
OMB
COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS
Report No: 577
Date: 06/05/2002
- LAW
NUMBER: P.L. 107-171 (H.R. 2646)
- BILL
TITLE: Farm Security and Rural Investment Act of 2002
- BILL
PURPOSE: Extends and expands federal agriculture and nutrition
programs, including farm income support, conservation, credit
assistance, trade, marketing assistance, rural development, and
research programs.
- OMB
ESTIMATE: P.L.107-171 provides additional farm income support
payments to producers for commodity programs including: new counter-cyclical
payments; existing fixed, decoupled payments; and existing marketing
assistance loans and loan deficiency payments. The Act also provides
additional funding for other agricultural programs, including
conservation, farm credit assistance, rural development, and research
programs. In addition, the Act restores and expands the Food Stamp
Program benefits to certain legal immigrants and simplifies the
program administration. The Act also provides additional funding
to expand other nutrition programs, including commodities for
soup kitchens and food pantries, farmers' markets for the elderly,
and child nutrition programs.
|
(Fiscal
years; in millions of dollars) |
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
| Agriculture...................... |
2,233 |
9,845 |
11,023 |
10,453 |
9,229 |
8,150 |
| Nutrition.......................... |
151 |
350 |
430 |
612 |
695 |
744 |
|
Net costs..................... |
2,384 |
10,195 |
11,453 |
11,065 |
9,924 |
8,894 |
- CBO
ESTIMATE:
|
(Fiscal
years; in millions of dollars) |
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
| Agriculture...................... |
1,544 |
7,992 |
9,381 |
9,565 |
9,107 |
8,436 |
| Nutrition.......................... |
69 |
414 |
473 |
647 |
760 |
817 |
|
Net costs..................... |
1,613 |
8,406 |
9,854 |
10,212 |
9,867 |
9,253 |
- EXPLANATION
OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:
CBO estimates net costs of the Act at $ 49.2 billion over the
period 2002 through 2007, $4.7 billion less than the OMB estimate
of $53.9 billion. Of the $4.7 billion difference, $3.0 billion is due to differing price assumptions and
baseline loan rate assumptions, which affect the cost of the new
counter-cyclical program and the existing marketing loan and loan
deficiency payment programs. The remaining difference is largely
the result of different assumptions regarding how a new conservation
program, the Conservation Security Program (CSP), is going to
be implemented (OMB assumes $1.1 billion more in outlays), and,
to a lesser degree, differences in spend-out rates for other conservation
programs. OMB's estimates of CSP outlays differs with CBO in two
main areas--the total amount of agricultural acres enrolled, and
the rate acres are brought into the program.
- CUMULATIVE
EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
|
(Fiscal
years; in millions of dollars) |
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
| Outlay
effect.............. |
2,204 |
34,370 |
35,866 |
34,897 |
19,143 |
9,894 |
| Receipt
effect............ |
0 |
-86,866 |
-106,319 |
-107,744 |
-126,474 |
0 |
| Net
costs.................... |
2,204 |
121,236 |
142,185 |
142,641 |
145,617 |
9,894 |
|
