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Report No: 539
Date: 12/07/00

OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

  1. LAW NUMBER: P.L.106-472 (H.R. 4788)

  2. BILL TITLE: Grain Standards and Warehouse Improvement Act

  3. BILL PURPOSE: (1) Provides for the collection of grain inspection and weighing fees; (2) improves the delivery of grain inspection and weighing services; (3) modernizes the regulation, inspection, and licensing of warehouses that store and handle agricultural commodities; and (4) provides for the issuance of receipts, including electronic receipts, for agricultural commodities.

  4. OMB ESTIMATE: P.L. 106-458 makes a technical correction in section 259 of the Agricultural Risk Protection Act of 2000 that authorizes the Secretary of Agriculture to use the Commodity Credit Corporation (CCC) funds to carry out the section. Section 259 restored eligibility for crop loss payments to producers who had a change of farm ownership structure during the past five years. OMB estimates that the CCC outlays will increase by $50 million in FY 2001 as a result.
    5. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Net costs............... 0 50 0 0 0 0

     

  5. CBO ESTIMATE:
    6. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Net costs............... 0 1 0 0 0 0

     

  6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

    7.  

    CBO scored the costs of restored eligibility for crop loss payments to the Agricultural Risk Protection Act. The only cost CBO is scoring to P.L. 106-458 is for the costs of an agricultural referendum, which OMB estimates to be insignificant.

  7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
    8. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Outlay effect.............. 34 1,442 2,470 7,109 7,841 8,035
    Receipt effect............ -8 -689 -794 -856 -908 -910
    Net costs.................... 42 2,131 3,264 7,965 8,749 8,945

    NOTE: The cumulative effect of direct spending and revenue legislation enacted to date is currently estimated to result in an end-of-session sequester. The Administration looks forward to working with the Congress to ensure that an unintended sequester does not occur.