Commodity Programs

Under the provisions of the new farm bill, farmers receiving federal support will operate with fewer controls over which crops to plant and how much acreage to put into production. This new approach is generically known as "freedom to farm." This report discusses the personnel reductions that could have been achieved by implementing the freedom-to-farm approach set forth in H.R. 2195 and the proposed Balanced Budget Act. As the farm bill was ultimately enacted, personnel reductions at the Agriculture Department (USDA) will still be possible but probably to a lesser degree than would have occurred under the original provisions. The new act adopted various provisions that changed some of the assumptions USDA used to estimate workloads and delayed crop insurance changes that will reduce USDA staffing needs. On the other hand, if USDA reduces its staffing under the new farm bill, it may be able to achieve further savings by closing or consolidating county offices.

GAO noted that: (1) under H.R. 2195, the freedom-to-farm provisions would have reduced the Farm Service Agency's (FSA) personnel by 1,823 staff years and saved approximately $332 million; (2) most of the personnel savings under H.R. 2195 would have occurred at the county level and would affect such program activities as commodity payment, record keeping, compliance, and reimbursable farm-measurement; (3) the proposed Balanced Budget Act would have achieved greater personnel savings than H.R. 2195 because it included changes not addressed by H.R. 2195; (4) personnel reductions under the proposed Balanced Budget Act would have decreased FSA staff by 13 percent, a net reduction of 2,719 staff years; (5) the Balanced Budget Act would have had the net effect of reducing FSA workload by 896 staff years; (6) as a result of the personnel reductions, USDA would have incurred separation costs of $28 million for a workload of 126 staff years; (7) these costs would have lowered USDA net savings to $304 million; and (8) the Balanced Budget Act would also afford USDA additional organizational changes, more savings, and an opportunity to focus on how it delivers its services.