Congressional Research Service: 'What Is the Farm Bill?'
Here are excerpts:
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SUMMARY
The farm bill is an omnibus, multiyear law that governs an array of agricultural and food programs. Titles in the most recent farm bill encompassed farm commodity revenue supports, agricultural conservation, trade and foreign food assistance, farm credit, research, rural development, forestry, bioenergy, horticulture, and domestic nutrition assistance. Typically renewed about every five or six years, the farm bill provides a predictable opportunity for policymakers to comprehensively and periodically address agricultural and food issues.
The most recent farm bill - the Agriculture Improvement Act of 2018, P.L. 115-334 - was enacted into law in
At enactment in
CBO released the budget baseline for scoring bills during the 2023 legislative session in
The allocation of spending across titles in the farm bill over time is not a zero-sum game. Legislative changes enacted in each farm bill account for only a fraction of the observed change between farm bills. Every year, CBO re-estimates the baseline to determine expected costs. Baseline projections can rise and fall over time based on changes in economic conditions, without action by
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Contents
What Is the Farm Bill? ... 1
What Is the Estimated Cost of the Farm Bill? ... 4
What Was the Expected Cost of the 2018 Farm Bill at Enactment? ... 4
What Is the Budget for the Next Farm Bill? ... 6
What Is the Effect of Supplemental Payments? ... 7
Which Farm Bill Programs Do Not Have a Continuing Baseline? ... 8
Title-by-Title Summaries of the 2018 Farm Bill ... 9
Title I: Commodity Programs ... 9
Title II: Conservation ... 10
Title III: Trade ... 11
Title IV: Nutrition ... 11
Title V: Credit ... 12
Title VI:
Title VII: Research, Extension, and Related Matters ... 12
Title VIII: Forestry ... 13
Title
Title X: Horticulture ... 13
Title XI:
Title XII: Miscellaneous ... 14
Figures
Figure 1. Selected Dates for
Figure 2. Farm Bill Titles with Mandatory Baseline ... 6
Figure 3. Baseline for Agriculture Programs in the Farm Bill ... 7
Figure 4. Conservation Title Baseline in the Farm Bill and Conservation Funding in the Inflation Reduction Act ... 8
Figure 5. 2018 Farm Bill Programs Without a Budget Baseline After FY2023, by Title ... 9
Tables
Table 1. Budget for the 2018 Farm Bill ... 5
Contacts
Author Information ... 16
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What Is the Farm Bill?
The farm bill is an omnibus, multiyear law that governs an array of agricultural and food programs. Although agricultural policies are sometimes created and changed by freestanding legislation or as part of other major laws, the farm bill provides a predictable opportunity for policymakers to comprehensively and periodically address agricultural and food issues. The farm bill is typically renewed about every five or six years./1
Historically, farm bills focused on farm commodity program support for a handful of staple commodities - corn, soybeans, wheat, cotton, rice, peanuts, dairy, and sugar. Farm bills have become increasingly expansive in nature since 1973, when a nutrition title was first included. Other prominent additions since then include conservation, horticulture, and bioenergy./2
The omnibus nature of the farm bill can create broad coalitions of support among sometimes conflicting interests for policies that, individually, might have greater difficulty negotiating the legislative process. This can lead to competition for funds provided in a farm bill. In recent years, more stakeholders have become involved in the debate on farm bills, including national farm groups; commodity associations; state organizations; nutrition and public health officials; and advocacy groups representing conservation, recreation, rural development, faith-based interests, local food systems, and certified organic production.
The Agriculture Improvement Act of 2018 (P.L. 115-334, H.Rept. 115-1072), referred to here as the "2018 farm bill," was the most recent omnibus farm bill. It was enacted in
(All titles in the 2018 farm bill are described in the text box below and in the section "Title-by-Title Summaries of the 2018 Farm Bill.")
Provisions in the 2018 farm bill modified the structure of farm commodity support, expanded crop insurance coverage, amended conservation programs, reauthorized and revised nutrition assistance, and extended authority to appropriate funds for many
Without reauthorization, some farm bill programs expire, such as the nutrition assistance programs and the farm commodity revenue programs. Procedurally, the potential for expiration and the consequences of expired law may motivate legislative action. Short-term extensions were enacted for farm bills in 2008 and 2013. Without reauthorization or extension, support for certain basic farm commodities would revert to long-abandoned - and potentially costly supply-control and price regimes under permanent law dating back to the 1940s. Some programs may cease to operate, while others might continue to pay only existing obligations. Nutrition programs that require reauthorization and are funded with mandatory spending can continue to operate via appropriations acts. Many discretionary programs would lose their statutory authority to receive appropriations, though an annual appropriations act could provide funding. Other programs amended in the farm bill have permanent authority (e.g., crop insurance)./4
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1 See CRS Report R45210, Farm Bills: Major Legislative Actions, 1965-2018. Since the 1930s, there have been 18 farm bills (2018, 2014, 2008, 2002, 1996, 1990, 1985, 1981, 1977, 1973, 1970, 1965, 1956, 1954, 1949, 1948, 1938, and 1933). Some researchers have identified other earlier enacted legislation considered to be "farm bill" legislation.
2 See also CRS In Focus IF12047, Farm Bill Primer: What Is the Farm Bill?.
3 See CRS Report R45525, The 2018 Farm Bill (P.L. 115-334): Summary and Side-by-Side Comparison.
4 See CRS Report R47659, Expiration of the Farm Bill.
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Figure 1 provides a timeline of selected important dates for
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Titles of the Farm Bill: Functions and
Title I, Commodity Programs: Provides farm payments when crop prices or revenues decline for major commodity crops, including wheat, corn, soybeans, peanuts, rice, dairy, and sugar. Includes disaster programs to help livestock and tree fruit producers manage production losses due to natural disasters. Other support includes margin coverage program for dairy and marketing quotas, minimum price guarantees, and import barriers for sugar.
Title II, Conservation: Encourages environmental stewardship of farmlands and improved management on private land through land retirement, conservation easements, working lands assistance, and partnership opportunities.
Title III, Trade: Supports
Title IV, Nutrition: Provides nutrition assistance for low-income households through programs including the
Title V, Credit: Offers direct government loans and guarantees to producers to buy land and operate farms and ranches. Eligibility rules and policies prioritize and increase assistance for beginning and socially disadvantaged producers.
Title VI,
Title VII, Research, Extension, and Related Matters: Supports a wide range of agricultural research and extension programs that expand academic knowledge about agriculture and food and help farmers and ranchers become more efficient, innovative, and productive.
Title VIII, Forestry: Supports forestry management programs run by
Title
Title X, Horticulture: Supports specialty crops, including fruits, vegetables, tree nuts, and nursery products, through market promotion, plant pest and disease prevention, and research. Provides assistance to support
Title XI,
Title XII, Miscellaneous: Covers other programs and assistance, including livestock and poultry disease preparedness and animal health. Includes programs for beginning farmers and ranchers and limited-resource and socially disadvantaged farmers, among other miscellaneous provisions.
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Figure 1. Selected Dates for
Source: Figure created by the
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The economic depression and dust bowl in the 1930s prompted the first "farm bill" in 1933, with subsidies and production controls to raise farm incomes and encourage conservation. Commodity subsidies evolved through the 1960s, when Great Society reforms drew attention to food assistance. The 1973 farm bill was the first "omnibus" farm bill. It included not only farm supports but also food stamp reauthorization to provide nutrition assistance for needy individuals. Subsequent farm bills expanded in scope, adding titles for formerly stand-alone laws such as trade, credit, and crop insurance. New conservation laws were added in the 1985 farm bill, organic agriculture in the 1990 farm bill, research programs in the 1996 farm bill, bioenergy in the 2002 farm bill, and horticulture and local food systems in the 2008 farm bill.
What Is the Estimated Cost of the Farm Bill?
The farm bill authorizes programs in two spending categories: mandatory and discretionary.
* Mandatory spending programs generally operate as entitlements. Mandatory spending is authorized and paid for when a law is enacted under budget enforcement rules that use multiyear federal budget estimates./5
* Discretionary spending programs are authorized for their scope but are not funded in the farm bill. They are subject to annual appropriations and may not receive any funding or may receive less than the farm bill-authorized amount.
Mandatory spending programs usually dominate the farm bill debate and its budget. The farm bill "pays" for mandatory spending in addition to determining policy. These procedures follow a framework of laws for budget enforcement that use projected "baseline" and "scores" from the
The CBO baseline represents an availability of funding; it is a projection at a particular point in time of what future federal spending on mandatory programs would be assuming current law continues. This baseline is the benchmark against which proposed changes in law are measured. Having a baseline essentially gives programs built-in future funding if policymakers decide that the programs are to continue. Straightforward reauthorization would have zero budget effect.
The impact (score) of a proposed bill that alters mandatory spending is measured in relation to the baseline. Changes that increase spending relative to the baseline have a positive score; those that decrease spending relative to the baseline have a negative score; and budget neutral refers to having a zero score. Increases in overall cost beyond the baseline may be subject to budget constraints, such as pay-as-you-go (PAYGO) requirements./6
Reductions from the baseline may be used to offset other provisions in a bill that have a positive score or to reduce the federal deficit. The annual budget resolution determines whether a farm bill will be held budget neutral, must reduce spending, or may increase spending./7
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5 See CRS Report R45425, Budget Issues That Shaped the 2018 Farm Bill.
6 See CRS Report R41157, The Statutory Pay-As-You-Go Act of 2010: Summary and Legislative History.
7 CRS In Focus IF12233, Farm Bill Primer: Budget Dynamics.
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What Was the Expected Cost of the 2018 Farm Bill at Enactment?
At enactment in
Four titles accounted for 99% of anticipated farm bill mandatory outlays: Nutrition,
Since enactment of the 2018 farm bill, CBO has updated its projections of government spending given new information about the economy and program participation./9 Generally, such changes are due solely to changing economic conditions.
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Table 1. Budget for the 2018 Farm Bill
Sources: CRS from the
Notes: Baseline for the Credit title is negative because of receipts to the
Baseline for the
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8
9 For information on CBO baseline projections, see CBO, "Details About Baseline Projections for Selected Programs," USDA Mandatory Farm Programs data, at https://www.cbo.gov/data/baseline-projections-selected-programs#25.
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What Is the Budget for the Next Farm Bill?
CBO released an official budget baseline for scoring bills during the 2023 legislative session in
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Figure 2. Farm Bill Titles with Mandatory Baseline
Sources: Created by CRS using
The relative proportions of farm bill spending have shifted over time. In the 2023 projection, the Nutrition title is 84% of the farm bill baseline, compared with about 76% when the 2018 farm bill was enacted. The increase in the 10-year baseline for the Nutrition title since 2018 is 84%, reflecting consequences of the Coronavirus Disease 2019 (COVID-19) pandemic, inflation, and administrative adjustments in the Thrift Food Plan pursuant to the 2018 farm bill. For the non-nutrition agriculture programs in the farm bill, current economic projections are that program outlays would be
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10 Farm bills have 5-year and 10-year budget projections according to federal budgeting practices.
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Figure 3. Baseline for Agriculture Programs in the Farm Bill
Source: Created by CRS using the CBO
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What Is the Effect of Supplemental Payments?
Supplemental spending (i.e., spending for agriculture and nutrition programs that is not provided for in the farm bill) is not part of the baseline but may be important in considering the next farm bill because of the magnitude of supplemental spending in recent years. In FY2019 and FY2020, the
Since 2018,
The supplemental funding is not regular farm bill funding.
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Figure 4. Conservation Title Baseline in the Farm Bill and Conservation Funding in the Inflation Reduction Act
Source: Created by CRS using the
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Which Farm Bill Programs Do Not Have a Continuing Baseline?
Twenty-one programs, shown in Figure 5, received mandatory funding in the 2018 farm bill but do not have a baseline beyond FY2023. As
From a budgetary perspective, many programs are assumed to continue beyond the end of their authorization. That is, they have a continuing baseline beyond the end of a farm bill, which gives them built-in future funding if policymakers decide that the programs are to continue, or, if not, the baseline can be reallocated or used as an offset for deficit reduction. Reauthorizing farm bill programs without baseline would have a positive score (cost) and would likely need to be offset by reductions elsewhere.
For more background, see CRS In Focus IF12115, Farm Bill Primer: Programs Without Baseline Beyond FY2023.
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11 For more background, see CRS Insight IN11978, Inflation Reduction Act: Agricultural Conservation and Credit, Renewable Energy, and Forestry, and CRS Report R47478, Agricultural Conservation and the Next Farm Bill.
12 For more background, see CRS In Focus IF12101, Farm Bill Primer: Disaster Assistance.
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Figure 5. 2018 Farm Bill Programs Without a Budget Baseline After FY2023, by Title
Source: Created by CRS using CRS Report R45425, Budget Issues That Shaped the 2018 Farm Bill, Table 3, table notes b and c.
Notes: Programs in P.L. 115-334 are identified as having mandatory budgetary outlays during FY2019-FY2023 but no budget authority beyond FY2023. See CBO, H.R. 2, Agriculture Improvement Act of 2018,
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Title-by-Title Summaries of the 2018 Farm Bill
Following are summaries of the major provisions of each title, as organized in the 2018 farm bill. For more detailed information about the development of provisions in the 2018 farm bill, see CRS Report R45525, The 2018 Farm Bill (P.L. 115-334): Summary and Side-by-Side Comparison.
For a contemporary discussion of title-by-title policy options proposed by stakeholders for
Title I: Commodity Programs/13
The Commodity Programs title authorizes support programs for dairy, sugar, and covered commodities - including major grain, oilseed, and pulse crops - as well as agricultural disaster assistance. The 2018 farm bill extended authority for most current commodity programs but with some modifications. Major field-crop programs included Price Loss Coverage (PLC),
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13 See CRS In Focus IF11163, 2018 Farm Bill Primer: The Farm Safety Net; CRS In Focus IF11164, 2018 Farm Bill Primer: Title I Commodity Programs; and CRS In Focus IF11188, 2018 Farm Bill Primer: Dairy Programs.
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Agricultural Risk Coverage (ARC), and Marketing Assistance Loans (MAL). The dairy program protected a portion of the margin between milk and feed prices. The sugar program provided a combination of price supports, limits on imports, and processor/refiner marketing allotments. Four disaster assistance programs focused primarily on livestock and tree crops. Title I also included several administrative provisions that set payment limits, an adjusted gross income (AGI) threshold, and other details for payment attribution and eligibility.
The 2018 farm bill provided producers the flexibility of switching between ARC and PLC coverage under certain conditions. Producers could update their program yields for the PLC, and an escalator provision was added that could potentially raise a covered commodity's effective reference price. For ARC, data from the
For dairy, a new Dairy Margin Coverage (DMC) program added higher levels of margin coverage, provided for lower producer-paid premium rates for 5 million pounds or less of milk production, and allowed producers to cover a larger percentage of milk production compared with the 2014 Margin Protection Program. Under DMC, premiums were designed to incentivize higher levels of coverage. Producers could participate in both margin coverage and the Livestock Gross Margin-Dairy insurance program that insured the margin between feed costs and a designated milk price.
For assistance following a disaster, the 2018 farm bill amended payments for livestock and tree losses and removed select payment limitations. It also expanded eligibility for the
Title II: Conservation/14
The Conservation title provides assistance to agricultural producers by addressing environmental resource concerns on private land through land retirement, conservation easements, working lands assistance, and partnership opportunities. The 2018 farm bill reauthorized and amended many of the largest conservation programs and created a number of new pilot programs, carveouts, and initiatives.
The two largest working lands programs - Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP) - were reauthorized and amended. Enrollment for CSP was reduced and funds were shifted, in part, to EQIP and other farm bill conservation programs. EQIP was expanded to irrigation and drainage entities, and additional funding carve-outs and pilot projects were authorized. The largest land retirement program - the Conservation Reserve Program (CRP) - was reauthorized and expanded by incrementally increasing the enrollment limit from 24 million acres in FY2019 to 27 million acres by FY2023. CRP payments to participants were reduced, and additional subprograms were authorized. The Regional Conservation Partnership Program (RCPP) was redefined as a stand-alone program with separate contracts and an expanded scope of eligible projects. Agricultural land easements in the Agricultural Conservation Easement Program (ACEP) were amended to provide additional flexibility to eligible entities.
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14 See CRS Report R45698, Agricultural Conservation in the 2018 Farm Bill; or CRS In Focus IF11199, 2018 Farm Bill Primer: Title II Conservation Programs.
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Title III: Trade/15
The Trade title addresses
The 2018 farm bill reauthorized existing
The 2018 farm bill reauthorized all international food assistance programs as well as certain operational details such as prepositioning of agricultural commodities and micronutrient fortification. It also added a provision requiring that food vouchers, cash transfers, and local and regional procurement of non-
Title IV: Nutrition/16
The Nutrition title provides food assistance for low-income households through programs including SNAP and
For the SNAP Electronic Benefit Transfer (EBT) system, the 2018 farm bill placed limits on fees, shortened the time frame for unused benefits, and changed the authorization requirements for some farmers' market operators. It required nationwide online acceptance of SNAP benefits and authorized a pilot project about recipients' use of mobile technology to redeem SNAP benefits.
The 2018 farm bill further reauthorized, renamed, and expanded the Food Insecurity Nutrition Incentive (FINI, now the Gus Schumacher Nutrition Incentive Program), a grant program for projects that incentivize SNAP and other low-income participants' purchase of fruits and vegetables. The 2018 farm bill also continued funding for the Senior Farmers' Market Nutrition Program and reauthorized but reduced funding for the Community Food Projects grants.
It also reauthorized and revised food distribution programs. Supporting emergency feeding organizations, the bill reauthorized TEFAP and authorized new projects to facilitate the donation of raw/unprocessed commodities. The Food Distribution Program on Indian Reservations now requires the federal government to pay at least 80% of administrative costs and includes a demonstration project for tribes to purchase their own commodities.
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15 See CRS In Focus IF11223, 2018 Farm Bill Primer: Agricultural Trade and Food Assistance.
16 See CRS In Focus IF11087, 2018 Farm Bill Primer: SNAP and Nutrition Title Programs.
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Title V: Credit
The Credit title offers direct government loans to farmers/ranchers and guarantees on private lenders' loans. For the
Title VI:
The Rural Development title supports rural business and community development. The 2018 farm bill made changes to existing
Title VII: Research, Extension, and Related Matters/18
The Research title supports agricultural research at the federal level and provides support for cooperative research, extension, and postsecondary agricultural education programs. The 2018 farm bill reauthorized several existing programs and established new programs and initiatives.
The 2018 farm bill also amended and reauthorized funding for the competitively awarded Agriculture and Food Research Initiative (AFRI),
Among new programs and initiatives, the 2018 farm bill established the Agriculture Advanced Research and Development Authority Pilot, research Centers of Excellence at 1890 Institutions (historically black land-grant colleges and universities), and competitive grants programs to benefit tribal students and those at 1890 Institutions. It also established new competitive research and extension grants for hemp research and indoor and urban agriculture.
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17 See CRS In Focus IF11225, 2018 Farm Bill Primer: Rural Development Programs.
18 See CRS In Focus IF11319, 2018 Farm Bill Primer:
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Title VIII: Forestry/19
The Forestry title supports forestry management programs run by
It reauthorized the Healthy Forests Reserve Program, Rural Revitalization Technology,
The 2018 farm bill changed how the
Title
The Energy title encourages the development of biofuels and farm and community renewable energy systems through grants, loan guarantees, and a feedstock procurement initiative. It also supports increases in energy efficiency as well as the development of biobased products. The 2018 farm bill extended eight programs and one initiative through FY2023, repealed one program and one initiative (the
Title X: Horticulture/22
The Horticulture title supports specialty crops - as defined in statute, covering fruits, vegetables, tree nuts, and nursery products - through a range of initiatives, including market promotion, plant pest and disease prevention, and public research. The title also provides support to certified organic agricultural production and locally produced foods.
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19 See CRS In Focus IF10681, Farm Bill Primer: Forestry Title.
20 See CRS Report R45696, Forest Management Provisions Enacted in the 115th
21 See CRS In Focus IF10639, Farm Bill Primer: Energy Title.
22 See CRS In Focus IF11317, 2018 Farm Bill Primer: Specialty Crops and Organic Agriculture.
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The 2018 farm bill reauthorized many of these provisions, including block grants to states, support for farmers markets, data and information collection, education on food safety and biotechnology, and organic certification. Provisions affecting the specialty crop, certified organic, and local foods sectors were not limited to the Horticulture title (Title X) but were contained within several other titles, including the Research, Nutrition, and Trade titles.
The 2018 farm bill expanded and added funding for farmers markets and local food promotion programs by combining existing programs to create a new Local Agriculture Market Program. Other provisions supporting local and urban agriculture development were housed in the Miscellaneous, Research, Conservation, and
The 2018 farm bill authorized establishing a regulatory framework for the cultivation of hemp (as defined in statute) and created a new regulatory program for hemp production under
Title XI:
The 2018 farm bill made several modifications. It expanded coverage by authorizing catastrophic policies for forage and grazing crops and grasses. It also allowed producers to purchase separate crop insurance policies for crops that can be both grazed and mechanically harvested on the same acres and to receive independent indemnities for each intended use. For crop insurance research and development, the farm bill redefined beginning farmer or rancher as an individual having actively operated and managed a farm or ranch for less than 10 years. This redefinition made these individuals eligible for federal subsidy benefits of whole-farm insurance plans.
The farm bill also allowed waivers of certain viability and marketability requirements for developing a policy or pilot program for the production of hemp. It further added hemp (as defined in statute) as an eligible crop for federal crop insurance and to the limited list of crops that cover post-harvest losses.
Title XII: Miscellaneous
The Miscellaneous title of the 2018 farm bill covered a wide array of issues across six subtitles, including livestock, agriculture and food defense, historically underserved producers,
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23 See CRS In Focus IF11252, 2018 Farm Bill Primer: Support for Local Food Systems; and CRS In Focus IF11210, 2018 Farm Bill Primer: Support for Urban Agriculture.
24 See CRS In Focus IF11088, 2018 Farm Bill Primer: Hemp Cultivation and Processing.
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The livestock provisions established the National Animal Disease Preparedness Response Program and the
The Miscellaneous title included a number of other provisions covering a wide range of policy issues. Among these, it directed
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25 See CRS In Focus IF11227, 2018 Farm Bill Primer: Beginning Farmers and Ranchers.
26 See CRS In Focus IF11093, 2018 Farm Bill Primer: Veteran Farmers and Ranchers.
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The report is posted at: https://crsreports.congress.gov/product/pdf/RS/RS22131
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