Updates 
News 

Dairy Title Of New Farm Bill Approved By House Ag Panel
     An updated dairy program title for the 2007 farm bill was approved Thursday by the House Agriculture Livestock, Poultry and Dairy Subcommittee, but the panel did not act on a number of agricultural market enforcement measures some farm groups are seeking.
     One of the biggest changes was the subcommittee's adoption of a proposal from the National Milk Producers Federation to change the target price for government support from one based on milk alone to one based on other dairy products, because it considers basing support on milk prices alone to be outdated.
     Under the current program, the government purchases enough dairy products to keep the price of milk at $9.90 per hundredweight. Under the new proposal, it would make enough purchases to support the price of cheddar cheese in blocks at $1.13 per pound, cheddar cheese in barrels at $1.10 per pound, butter at $1.05 per pound and nonfat dry milk at 80 cents per pound.
     Subcommittee members did not take any action to extend the Milk Income Loss Contract program because the future baseline funding for that program will not be assured until the Iraq war supplemental spending bill that contains a short MILC extension is passed and signed by President Bush.
     The new title also would make permanent a pilot dairy forward-pricing program in which producers agree to provide future production to processors at a set price. Dairy processors like the program because it helps them better fix costs, but dairy cooperatives fear it could give processors more market power.
     Reps. Steve Kagen, D-Wis., and Kirsten Gillibrand, D-N.Y., said during the markup they would press for restrictions on forward-pricing when the bill reaches the full committee.
     NMPF said the program should last only as long as the current farm bill, and needs safeguards for producers. "Our support for forward contracting is conditioned on getting those protections included with the overall farm bill," CEO Jerry Kozak said.
     The subcommittee also approved a Kagen amendment to provide $10 million to the U.S. veal industry to compensate producers for what Kagen said were unfair trade practices, primarily in Canada. It was approved on a party-line 8-6 vote.
     By a similar vote, the panel approved an amendment offered by Agriculture Livestock, Poultry and Dairy Subcommittee Chairman Leonard Boswell, D-Iowa, to require arbitration in disputes over livestock or poultry contracts only if both parties consent in writing.
     Boswell, who has introduced a "competitiveness" bill to beef up enforcement of both the Packers and Stockyards Act and the Agricultural Fair Practices Act, presented but withdrew mandatory price reporting and contracting amendments without offering other competitiveness measures as expected.
     In other farm bill action Thursday, Senate Agriculture Chairman Harkin released a conservation proposal that would consolidate all working-lands conservation programs in a Comprehensive Stewardship Incentives Program so farmers would only have to apply once to solve a specific problem.
     Senate Budget Chairman Conrad also said in an interview that, with Harkin's approval, he has prepared commodity title proposals and sent them to CBO for scoring.
     Conrad said he agreed with Harkin that direct payments to farmers would have to be cut in order to find money to increase spending to encourage renewable energy production.    By Jerry Hagstrom

 

APPROPRIATIONS
Congress
Sends Supplemental To Bush
     Congress gave final approval Thursday to a $120 billion supplemental spending bill funding military operations in Iraq and Afghanistan through the end of the fiscal year.
     The measure also provides farmers and ranchers with assistance to cope with drought and other natural disasters, continued hurricane recovery aid for the Gulf Coast, and the first minimum wage increase since 1997.
     After a long struggle between President Bush and congressional Democrats, Bush said he would sign the bill because it dropped timelines for withdrawing troops from combat zones. Democrats did not have the votes to override a veto.
     "It's a political reality. It is not what we want to pass," House Majority Leader Hoyer said, although Democrats said they would come back later this year to press the issue again. Democrats did force Bush into accepting billions of dollars in unrelated spending in exchange, although they dropped a few items he had objected to.
     "I wanted to remove even more; but, still, by voting for this bill members of both parties can show our troops and the Iraqis and the enemy that our country will support our servicemen and women in harm's way," Bush said Thursday.
     In the place of timelines, Democrats included 18 benchmarks for the Iraqi government to demonstrate progress toward stabilizing the country. It also would tie economic aid to Iraq to progress in meeting the benchmarks, although the president could waive the restriction.
     House Democratic leaders structured the debate in such a way as to allow separate votes on Bush's funding request coupled with the benchmarks, and on portions providing additional military and veterans' funds as well as domestic priorities.
     Many Democrats, including Speaker Pelosi and Appropriations Chairman Obey, voted against the Bush request but for the roughly $17 billion in domestic and other items.
     "This proposition falls far short of containing everything that it should on both the Iraqi war and our own domestic needs, but I take some comfort in the knowledge that even Babe Ruth struck out more than 1,300 times," Obey said.
     The domestic portion was added on a 348-73 vote; Bush's funding request was approved 280-142. Later in the evening, the Senate voted 80-14 to send the combined measure to Bush's desk.
     Republicans complained of delay in getting the troop funding passed, as well as the added spending and being shut out of the negotiations. Appropriations ranking member Jerry Lewis, R-Calif., said the debate has been "long on politics and short on substance" marked by "symbolic votes to placate the 'Out of Iraq' caucus."
     "I'm deeply dismayed that this legislation was written completely without input from the minority," Lewis said. "They made a decision early on not only to abandon our troops but to abandon any semblance of bipartisanship."
     Senate Finance ranking member Charles Grassley, R-Iowa, took issue with matters in his panel's jurisdiction, such as small business tax cuts and language delaying by one year Medicaid regulations the administration says could save $5 billion. He also criticized pension relief for American and Continental airlines and other pension provisions, arguing they should go through the regular authorizing process.
     House Minority Leader Boehner said inclusion of minimum wage, pension provisions and spending unrelated to the war was a "sneaky way to do business."
     Democrats did cut $4.2 billion out of the initial bill Bush vetoed earlier this month, and numerous areas were subject to the pain. The farm aid was pared back nearly 15 percent, while homeland security funding was cut by more than half.
     Avian flu and low-income heating funds were dropped entirely, and even the military portion took a hit.
     Smaller cuts were made to wildland firefighting, overseas food aid and repairs to a NASA facility in Mississippi. Democrats found room to add $40 million for tornado damage in Kansas and $19 million for flooding in New York and New Jersey, as well as $60 million for Pacific Northwest salmon fishermen, $13 million for mine safety and $18 million for Western drought aid.    By Peter Cohn

 

House Roll Call Vote on Disaster: 348-73

http://clerk.house.gov/evs/2007/roll424.xml

 

Senate Roll Call: 80-14

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=1&vote=00181

 

Katy Ziegler

Legislative Director

National Farmers Union

400 N. Capitol Street, NW

Suite 790

Washington, D.C. 20001

202-314-3103- direct

202-554-1654- fax

202-494-5365- cell

kziegler@nfudc.org

www.nfu.org