WASHINGTON (AP) — A New Year’s deadline that could send the
price of milk skyward looms over congressional negotiators as they try to reach
agreement on a five-year farm bill.
They’ve been tripped up by differences over the nation’s
food stamp program and how to restructure farm subsidies.
The two chambers have been far apart on both issues for more
than two years.
But the leaders of the House and Senate Agriculture
committees expressed optimism after a private meeting that they may be able to
find resolution in time to narrowly avert the expiration of dairy subsidies on
If those subsidies expire, new laws will kick in that could
result in decreased dairy supply on the commercial market and higher prices for
a gallon of milk.
Rep. Mike Conaway of Texas, a Republican on the House-Senate
farm bill conference committee, said negotiators could possibly hold a public
meeting soon for the conference committee to settle some of the remaining issues
before the House leaves for the year on Dec. 13.
But with a final deal still elusive, it seems unlikely that
Congress will finish the bill before the end of the year.
House Speaker John Boehner said recently that the bill
should be extended through January while negotiators work out their differences.
Boehner also contradicted the optimism of House Agriculture Committee Chairman
Frank Lucas, R-Okla., who said that the two sides had made “great progress.”
“You know, I’ve not seen any real progress on the farm
bill,” Boehner said. “And so if we’ve got to pass a one-month extension of the
farm bill, I think we ought to be prepared to do that.”
An extension is not certain, however. Senate Majority Leader
Harry Reid, D-Nev., has said he doesn’t want to extend the bill again after
Congress already extended the bill at the beginning of this year.
Finding a compromise on cuts to the nation’s $80
billion-a-year food stamp program has been the toughest obstacle over the last
two years. The House passed a bill this summer that would cut $4 billion from
food stamps — now known as the Supplemental Nutrition Assistance Program, or
SNAP — annually and allow states to create new work requirements for some
The Democratic Senate, backed by President Barack Obama,
passed a farm bill with $400 million annual cut, or a tenth of the House cut.
Negotiators have discussed as a possibility cracking down
further on a practice in some states of giving low-income people as little as $1
a year in home heating assistance, even when they don’t have heating bills, in
order to make them eligible for increased food stamp benefits.
The Senate found its $400 million in annual cuts by
requiring that recipients receive at least $10 in assistance to make them
eligible, while the House doubled that cut by requiring that recipients receive
$20 annually — bringing the savings to around $800 million a year.
It’s unclear whether a compromise would include the new work
requirements passed by the House, but the Senate is unlikely to go along with
The Senate also has balked at a House provision to end
government waivers that have allowed able-bodied adults without dependents to
receive food stamps indefinitely. That proposal has been particularly important
to House Majority Leader Eric Cantor, R-Va.
White House spokesman Jay Carney reiterated Obama’s support
for the Senate version of the bill, calling the House SNAP cuts “unconscionable”
and harmful to families across the country.
“The president has mentioned and made clear that there is an
opportunity for bipartisan cooperation on a comprehensive farm bill,” Carney
said. “And he hopes and expects that that can be achieved before the end of the
Negotiators also are working out how farm subsidies should
be restructured in the absence of a traditional subsidy called direct payments,
which are paid to farmer regardless of crop price or crop yield.
Both chambers’ bills would eliminate this $5 billion annual
subsidy in response to critics who say it pays farmers not to farm.
But they have argued over how to replace those payments,
with major farm groups squabbling over whether subsidies should kick in based on
crop prices or farmer revenue, and how to count the acreage on which the
subsidies are based.
Minnesota Rep. Collin Peterson, the top Democrat on the
House Agriculture Committee, said negotiators had tentatively resolved some of
those subsidy issues. But they are still waiting for analysis of how much their
proposals would cost.
If the negotiators can’t agree on a bill and Congress allows
the dairy supports to expire, 1930s- and 1940s-era “permanent” farm legislation
would go into effect.
Those laws would raise the price that the government
currently pays to purchase dairy products, prompting many processors to sell to
the government instead of commercial markets. That would decrease commercial
supply and consequently raise prices for shoppers at grocery stores.
Prices wouldn’t go up immediately, as the Agriculture
Department would have to write the new rules based on the old laws and then put
them into place.
But Agriculture Secretary Tom Vilsack is warning that it may
not take that long, saying USDA was prepared to implement the dairy law in
“short order” if current law expires.
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