Andrew Taylor of the Associated Press is reporting that a deal has been struck between lawmakers from dairy-producing states that would provide $350 million in aid to struggling dairy farmers.All it took was two appropriators from the same state to reach the agreement, with a little input from a California Senator Feinstein. Of course, it helps if one appropriator is Dave Obey of Wisconsin, Chairman of the House Appropriations Committee, and it helps if the other is Senator Herb Kohl, also from Wisconsin, who is Chairman of the Senate Agriculture Appropriations Subcommittee. Regardless, a deal has been made and it appears likely that dairy farmers are going to get some relief from the fiscal year 2010 appropriations bill.
According to Taylor’s article, roughly $290 million will go towards direct aid for dairy farmers, “under a program to be devised by the Agriculture Department.” The other $60 million will be used to purchase surplus dairy products like cheese and milk for food banks and nutrition programs with the hope that removing these surplus items from the market will increase the price dairy producers get for their products.
A deal had to be reached because, while the $350 was set aside for unknown purposes in the Senate appropriations bill, the House bill had no such measure. So, the conference committee got to work. Taylor writes that dairy subsidies had become a contentious issues in the negotiations between conferees as larger dairy states like California and smaller states like Wisconsin and Vermont have different needs given the size of the operations in their respective states.
“Lawmakers disclosed the agreement before an afternoon negotiation on a $23.3 billion agriculture spending bill for the budget year that starts Thursday.”
Chairman Obey had wanted to implement a program that would be more beneficial in smaller-producer states like Wisconsin because it would pay farmers when prices drop, but caps benefits “after the first 3 million gallons milk produced, equivalent to the annual output of perhaps 200 cows.” Naturally, Senator Feinstein from California and other larger-producer states did not like this plan because they felt it disproportionally benefits smaller-producer states.
After Feinstein raised objections, Taylor reports that Senator Kohl, Chairman of the Senate Agriculture Appropriations Subcommittee, stepped in with the compromise: “$290 million for livestock producers and flexibility for the Agriculture Department in distributing the money. The dollars are expected to be divided between additional purchases of surplus dairy products and direct payments to farmers.”
Regardless of the size of the operation, Senator Bernie Sanders of Vermont maintains that “[t]he goal is to get the money into the pockets of family-based dairy farmers all over this country who are fighting right now for their survival.”
To read the Taylor article click here.
Posted: 09/30/09
