Corn Commentary

Farm Bill Chaos in the Capitol

Will we have a new farm bill at $10 billion above baseline, an extension of the 2002 bill for one year with minor changes, or permanent law from 1949?

Farm BillAt this point it’s anyone’s guess – although I would say that permanent law is more of a threat than a real possibility. Congressional ag leaders met on Friday and decided to instruct their staff to move ahead with a bill that’s about 10-billion dollars above baseline, even though they have not yet concluded a funding deal with the Senate Finance and House Ways and Means committees. They do seem to be in agreement that there will not be another short term extension of current law.

House Ag Committee Chairman Collin Peterson says even with an extension through April 18th, negotiators are out of time already. “We have to get this bill finished over the Easter recess,” Peterson said. “After we get the bill done, it takes two weeks to get all the language together, so we have maybe two days to get settled how we’re gonna move forward if we’re going to get this done by the 18th of April.”

Negotiators said Friday they’ll have to write a ‘bare-bones’ baseline bill unless they get a firm agreement from tax writers on added funding this week. President Bush has reportedly agreed and will recommend a one-year extension if a bill’s not ready by April 18th.