The Arithmetic of Commodity Title Programs

Farm Bill negotiations are influenced by their impacts on Federal outlays. Increasing per-acre corn payments for commodity title programs will have a much more significant effect on total Federal outlays than other crops because corn has many more base acres than other crops. Seed cotton, rice, and peanuts have lower base acres; hence, spending increases tend to have much less impact on total Federal outlays. As a result, seed cotton, rice, and peanuts often have larger per-acre increases in spending than does corn. This process is illustrated with the House Proposal for the next Farm Bill.