Congress convenes for compromise after farm bill expires, reverts to 1949 policies
November 4, 2013
Congress convened last Wednesday, Oct. 30, to discuss a compromise for the new farm bill.
Both the Democrats and Republicans are fighting to get their own provisions into the farm bill.
The farm bill is a piece of legislation that regulates farm production and prices of certain commodities.
Republicans want to cut out Supplemental Nutrition Assistant Programs —also known as food stamps — from the bill and pass it separately. Democrats fear if the SNAP programs are removed, many Americans will be affected.
“I doubt that the House will accept anything short of deep cuts in spending, and I do not believe the Senate will accept that outcome. In short, I doubt that a farm bill will pass this year and probably not in 2014. I am expecting a two-year extension of the present legislation,” said Neil Harl, professor emeritus of economics.
Until a compromise can be made, Congress will follow the policies of the 1949 farm bill. This action took effect on Oct. 1.
Sen. Chuck Grassley, R-Iowa, said he believes the policies of the 1949 farm bill will not have a great effect on farmers until later on next year.
“It doesn’t have any practical effect until you get down to Dec. 31,” Grassley said. “For most farmers, it won’t have a practical effect until next spring. But for dairy, it would immediately start on Jan. 1. But I think all of these things bring pressure to get a bill done,”
Harl and Steffen Schmidt, university professor of political science, both said the use of the policies from the 1949 farm bill could have drastically unfavorable effects.
“Commodity prices would trend higher, more recent conservation efforts would fall by the wayside and the current crop insurance program underwritten by the federal government would be sidelined,” Harl said.
Schmidt said prices for things such as milk would be grossly raised due to the 1949 policies.
“They’re totally out dated and they would cause a lot of problems,” Schmidt said.
With the prices of commodities on the possible rise, students might think twice about what to put on their grocery list.
Harl said the implementation of the 1949 farm bill would not only affect the food prices for students but also employment opportunities.
Sen. Tom Harkin, D-Iowa, said Americans will see a new farm bill in the future.
“If the House and Senate can come together in a bipartisan spirit we can pass a farm bill that makes appropriate adjustments [and] holds the line at the senate level of nutrition cuts,” Harkin said.
However, if the House continues to demand cuts to the SNAP programs it could hurt children, seniors, low-wage workers and individuals with disabilities. Harkin also said the cuts could deny producers in rural America a farm bill they need and deserve.
If current debates and discussion continue in Congress a new farm bill could be decided on close to Christmas, Grassley said.
“I’m predicting that we go up to about the Friday before Christmas to get a farm bill the same way with a lot of other things that are going to be done this fall,” Grassley said.
What does the future hold for the farm bill? Harl said he believes it is all about looking forward.
“I would expect some reduction in funding for crop insurance, an overhaul of direct payments at least to eliminate such payments when commodity prices are at an acceptable level in terms of costs of production,” Harl said.