Farm Bill Stalled Over Dairy Supply Management Provisions

On January 10, 2014, in Farm Bill, by Maggie Ernst

Final action on a farm bill conference report is now likely to slip into late January.  It has been expected that House and Senate leaders of the agriculture committees would announce a deal on a new farm bill this week; however, a fight over dairy supply management provisions has held up completion of the bill this week, according to those close to the talks.

Negotiations broke down mid-week  because of disagreement between Speaker John Boehner (R-OH) and Rep. Collin Peterson (D-MN), the top Democrat on the House Agriculture Committee.  Boehner and dairy-using industries oppose dairy production restrictions favored by Peterson and milk producers. Plans for the conference have been on hold since Boehner last Friday reiterated his continuing opposition to the market stabilization/supply management provision.  At issue is a new margin insurance initiative for dairy farmers that would include supply management tools to guard against over production. Peterson has argued that the supply controls are necessary to keep down the cost of the insurance program.  However, Boehner believes the increased government role amounts to a “bridge-to-far” in the world of dairy policy, according to a Politico report.

“It needs to be done as soon as possible but the issues are of such magnitude I can’t go until I get the issues addressed,” House Agriculture Committee Chairman Frank Lucas (R-OK) said.  “I don’t know that I understood how just hard the positions were by the two interested parties.  No one has shown any flexibility whatsoever. Boehner’s statement to me was that if supply management is in it, it’s not coming to the floor.  Flat out,” Lucas said

Meanwhile, Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) said that “over the weekend, we’ve got to come to a conclusion here….We are basically down to focusing on differing approaches on dairy.  It would be a shame if the Speaker tried to stop the farm bill at this point.”

In addition, conflicts remain over payment limitations to farmers, whether to repeal a provision in the 2008 farm bill moving catfish inspection from the Food and Drug Administration to the Agriculture Department, and a few other issues. However, consensus appears to have been reached to cut $9 billion over 10 years from the food stamp program.  Those cuts are more than twice the $4 billion approved by the Senate in May, but far less than the nearly $40 billion in cuts by the House in its bill.