According to House Ag Committee Ranking Member Collin Peterson – there is a dairy program in the works that he believes he can accept. But Peterson had not seen the dairy language – it had only been described to him. As a result – Peterson released a statement Thursday to explain that he has not agreed to a dairy proposal in the farm bill yet. Peterson still supports the Dairy Security Act. According to Peterson – the proposed concept appears to move in the right direction and might be something he could reluctantly support. Without further details – he says a lot still needs to be worked out. Under the proposal – Peterson says the margin insurance already in the House and Senate bills would remain exactly as is. But if the margin between price and cost of production becomes too tight – dairy producers would get a signal not to increase production. That signal would be either through elimination or reduction of payments or through an increase in the premium for the margin insurance – though Peterson says that decision has not been finalized. The market stabilization/supply management provision would not be in the bill. There would be no price supports or an extension of the Milk Income Loss Contract Program either. Peterson says there may be an increase in the government’s ability to buy milk. If the dairy program is worked out – Peterson says it would pave the way for the House leadership to bring the farm bill to the floor the week of January 27th.
Source: NAFB News Service