Farm Bill Progress; Still a Ways to Go

April 15, 2002

A number of major issues still have to be resolved by the House-Senate farm bill conference committee, including what to do with the $2 billion direct payment program for dairy that was included in the Senate bill. No similar program was in the House-passed version. But progress has been made on other issues.

The Senate bill proposes one dairy program with two separate payment plans, says the International Dairy Foods Association, one that would apply to 12 states in the Northeast and another that would apply to the rest of the nation. The 12 states are Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, Pennsylvania, New Jersey, Delaware, Maryland and West Virginia.

If adopted, more money would be paid out to producers in the 12 northeastern states, creating more regional divisiveness, according to IDFA. The more progressive, larger producers in the western states would be limited in participation by payment limitations. Sen. Patrick Leahy (D-VT), who is a farm bill conferee, is insisting that a payment plan be included.

Several House conferees -- including Rep. Richard Pombo (R-CA), who is the House dairy subcommittee chairman, Reps. John Boehner (R-OH), Bob Goodlatte (R-VA), and Cal Dooley (D-CA) -- have been outspoken against a payment plan.

In an attempt to reach a compromise, Rep. Collin Peterson (D-MN), the ranking Democrat on the Dairy Subcommittee, recently offered an alternate plan for consideration by conferees that would be nationwide in its application but rely on setting up production bases. Payments would be made only on the historical production base, not on any new production, creating a disincentive for growth, IDFA says. No agreement has been reached, but this plan could be part of a final agreement if there is no opposition.

THE ASSOCIATED PRESS reports that lawmakers reported progress toward an agreement after a day of private negotiations Friday. With the talks turning serious, says the AP, the negotiators canceled a public meeting Friday and decided not to hold another one before Tuesday.

"Very good progress was made," Sen. Kent Conrad (D-ND) said after a 3 1/2-hour negotiating session. Keith Williams, a spokesman for House Agriculture Committee Chairman Larry Combest (R-TX), described the progress as significant.