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Congress May Take Up Farm Bill This
Week Congress is back at work after its summer recess, and key issues for dairy foods companies are likely to be debated on Capitol Hill in the coming weeks. The first opportunity may come on the House Agriculture Committee farm bill that was completed by that committee in July. Committee Chairman Larry Combest (R-TX) is hoping for House floor action on his farm bill on September 13-14. However, some observers believe farm bill action could be postponed because of the looming battle over how and how much to spend from the federal treasury. The Bush Administration has yet to weigh in on the farm bill, but Agriculture Secretary Ann Veneman stated on August 31 that Congress should look beyond grain and cotton growers as it overhauls farm laws and put more resources into programs that benefit other farmers. She said the administration is developing principles for farm policy that will emphasize a number of issues besides farm subsidies, including food safety programs. "We really need to look at the whole food system and the agriculture system much differently than we have in the past," said Veneman. The House Agriculture Committee bill includes the following provisions that may be of interest to IDFA member companies: Dairy Provisions· Extension of the dairy price support program through 2011 at $9.90 per hundredweight. · Removal of the provisions from the last farm bill that replaced the price support program with a nonrecourse loan program. · Extension of the Dairy Export Incentive Program at levels allowable under our trade agreements. · Non-controversial amendments to the legislative authority for the MilkPEP program. · Assessment for dairy producer check-off program extended to imported dairy products. Sugar Provisions · Loan rates for cane and beet sugar remain at 18.00 and 22.90 cents respectively, with a one-cent forfeiture penalty for each. · New supply management provisions to provide the ability to limit domestic sugar supplies and prop up prices. If the committee's farm bill is debated by the full House, there will be an attempt to offer amendments to add dairy compacts and to revise the sugar provisions. Compact proponents could also try to attach language to remaining "must pass" appropriations bills. Member participation in grassroots lobbying is key to capture legislators' attention on these issues. To learn more about IDFA's legislative and grassroots initiatives, click here. |
