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Congressional Leaders, Administration Push Conferees for Farm Bill Progress Senate Majority Leader Harry Reid and U.S. House Speaker Nancy Pelosi called on congressional Farm Bill conferees last Thursday to put aside lingering differences and finish the legislation without delay. Because the extension of the 2002 Farm Bill will expire at the end of this week, the leaders said they may consider a second extension, possibly giving Congress until April 15 to finish the bill.The Bush administration also has reached out to Congress with a proposed budgetary framework for the Farm Bill that would eliminate the threat of a White House veto. To help speed the approval process, the administration announced late last month that it is willing to consider spending up to $10 billion above the Congressional Budget Office baseline if the new Farm Bill contains significant commodity program reforms and income payment limitations. The framework paper listed several conditions that must be met, including specific areas of dairy and sugar reform. For dairy, the U.S. Department of Agriculture (USDA) must continue to have the authority to adjust dairy component prices to limit the build-up of dairy stocks. In addition, Milk Income Loss Contract (MILC) payments are to remain the same. "It's heartening that the administration has emphasized the importance of these dairy reform items," said Jerry Slominski, IDFA senior vice president of legislative affairs. "We hope that other equally important issues, like the re-establishment of the forward contracting program and the creation of an industry commission to examine the Federal Milk Marketing Orders, will not be lost in the rush to close the deal." The administration's proposed changes to the sugar support program, however, dovetail nearly completely with IDFA's position on sugar policy reform. The framework paper calls for eliminating the sugar-to-ethanol program, which, as proposed, would not permit USDA to disposed of excess sugar for any use other than making ethanol, even though other uses could reduce taxpayer costs. It also would freeze sugar loan rates and eliminate the proposed Farm Bill provision that guarantees U.S. sugar producers 85 percent of the domestic market. "We are certainly pleased that the administration is trying to keep the sugar program under control," said Clay Hough, IDFA senior group vice president. "If adopted, the USDA proposals will maintain the U.S. sugar program at current levels rather than allow changes that could further increase sugar prices." To read the administration's proposed budgetary framework, click here.
Posted March 10, 2008
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