On August 2, the Congressional Budget Office (CBO) released the official House farm bill estimate. It is projected to add $33 billion to the federal deficit over the next decade. The cost of the farm bill would be $1.25 trillion between 2025 and 2033 time span. This funding shortfall means house leaders will either direct the CBO to revise its budget estimate or revise the legislation to fall within budget constraints.

The main cost driver would be an increase in commodity program provisions. This includes higher reference prices in the Price Loss Coverage (PLC) program.

House leaders hoped to close the gap by suspending the USDA’s use of Section 5 under its Commodity Credit Corporation (CCC) spending authority. This revolving fund allows the USDA to address various agricultural challenges. However, CBO estimates potential savings from suspending this authority to range between zero and $8 billion.

House Agriculture Committee Chair GT Thompson expressed a willingness to work with the CBO and the Budget Committee to address the funding gap.

Read more on the official CBO farm bill scoring here.