All Posturing Aside, Farm Bill Makes Progress

August 8th, 2013

By:

Category: Policy

(IDFA) – August is here, and Congress has adjourned until early September. Regardless of the posturing by both parties, progress is being made on the Farm Bill. Both the House of Representatives and the Senate have now passed their proposals. The process is moving forward, but we don’t know how it will end.

One thing that we do know is that when dairy supply management was put to a vote, it was soundly defeated by a more than two to one margin. By 291-135, the House passed the Goodlatte-Scott amendment and took a strong stand against any new government program that imposes quotas on dairy producers.

Lost in the debate over supply management is the fact that, by adopting the amendment, the House voted for a new and effective revenue insurance plan based on margins that will help dairy producers manage risk and price volatility.

Here are some things you may not know about what is now in the House bill.

  • At a time when spending for agriculture is being slashed, support for our dairy programs goes up. According to the Congressional Budget Office, the House bill more than doubles support for dairy producers. Although milk is our second largest agriculture commodity, with nearly 25 percent of receipts, producers will still receive less than one percent of federal agriculture support.
  • The House bill also eliminates annual fees of up to $2,500 per farm that are proposed in the Senate bill. The House bill gives small producers a break by charging lower premiums for additional insurance. And, according to a study conducted by Professor Scott Brown of the University of Missouri, the House bill addresses price volatility better than proposals with supply management.
  • The dairy policy now included in the House bill accepts over 75 percent of what was proposed by the Dairy Security Act. It effectively took the good parts of that proposal and removed the bad.

With its overwhelming support for the Goodlatte-Scott amendment, the House did more than reject dairy supply management; it endorsed sound, forward-looking dairy policy, which will not only help dairy farmers manage volatility and risk but that will enable our dairy industry to continue to grow, expand exports and create jobs.

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