Depending on who your source is...when Congress return from their Martin Luther King Jr. Holiday we may just see a bill come out of the farm bill conference committee. According to a key player in this drama.. House Ag Committee Ranking Democratic Member Collin Peterson ..... there is a dairy program in the works that he believes he could support. Peterson quickly added however...that he has not seen the specifics of this plan...so at this time he is still supporting the Dairy Security Act.
But from what has been shared to fellow farm broadcasters, the alleged proposal would contain margin insurance as already approved in both houses of Congress..but there would be no supply management provision in the bill and no extension of the milk income loss contract program. However.... if the margin between price and cost of production becomes too tight..dairy producers would get a signal not to increase production through either the elimination or reduction of payments or through an increase in the premium for the margin insurance.
If this truly is a compromise that the conferees can agree on.... with a few additional tweaks, the farm bill could be sent to congress by the end of the month. Reaction to the proposal has been mixed. For those supporters of margin insurance without the market stabilization provision this is a huge step in the right direction. But for groups like National Milk who wanted the Dairy Security Act to stay in tact.. this is a disappointment that they hope will be improved upon before final passage.
Again this is only the latest news coming out of Washington. There are still those who feel yet another option may arise..... and their are some who feel MILC still may be the best compromise option. Stay tune...... just like the weather....this story continues to change.