Crop insurance reform and some action on dairy legislation likely will be on the front burner for congressional consideration this year.  A House official believes the $6 billion for crop insurance reform is too tempting to ignore.

“The bulk of that money probably will go to some form of premium subsidy increase,” he said in an interview.  “Beyond that, we’re still trying to find out what people think we should do.”  The premium subsidy increase could be “pretty substantial,” he added.  “This is a lot of money.”

Congress has $6 billion in the budget for crop insurance reofrm over five years.  Although none of that money is earmarked for fiscal year 2000, the House official said adjustments could be made for the 2000 crop year, since federal spending for crop insurance “falls most heavily in the year following the crop.”

At least in the House, he said, some legislation probably will be approved this year to change at least part of the USDA final rule on milk marketing order reform.  Instead of the modified Option 1B that USDA included in the final rule, efforts will be made to mandate the use of the Option 1A, something milk producers prefer.  Along with that debate will be a discussion to restore the price support program, now scheduled to terminate later this year.  “How that will come out, I don’t know,” he said.

There also will be a debate on what to do about dairy compacts, the outome of which is unknown at this point.  Legislation has been introduced in both the Senate and Housse to extend the life of the Northeast Dairy Compact and authorize a 15-state compact to be established in the South.  Legislation also is pending in the Senate to repeal the Northeast Compact authority.

Other issues that will be considered, at least by the House Agriculture Committee, include modifications in the farm credit system and perhaps allowing farmers to take their entire annual freedom to farm payment each year if they so wish.