Corn Commentary

Farm Groups Disappointed in Farm Bill Extension

fps12-ncga-pamPretty much every farm organization has expressed disappointment over the nine-month farm bill extension included in the New Year’s Day fiscal cliff package, with the hope that Congress will do better in 2013.

“We don’t support an extension of the 2008 farm bill, we worked very hard to see reform,” said National Corn Growers Association president Pam Johnson, noting that the farm bill passed by the Senate in 2012 would have helped to reduce federal spending. “It would have saved $23 billion,” she said. “That’s what makes it so disappointing for us.”

Listen to my interview with Pam here: Interview with Pam Johnson

While it was the prospect of the so-called “dairy cliff” that led lawmakers to even think about a farm bill, it’s ironic that the National Milk Producers Federation is among the most unhappy with the outcome. National Milk Producers Federation (NMPF) President and CEO Jerry Kozak called the extension a “devastating blow to the nation’s dairy farmers” that amounts to “shoving farmers over the dairy cliff without providing any safety net below.” He says that the dairy industry will continue to push the 113th Congress to pass a five year farm bill that includes the Dairy Security Act, which eliminates the dairy product price support program, direct payments, and export subsidies, and establishes a voluntary risk management tool for farmers which would cost taxpayers less.

Other groups including the American Farm Bureau, National Farmers Union, and American Soybean Association had similar “disappointed but optimistic” statements. Even Secretary of Agriculture Tom Vilsack said he was “disappointed Congress has been unable to pass a multi-year reauthorization of the Food, Farm and Jobs bill to give rural America the long-term certainty they need and deserve” and that he will continue to work with Congress to pass a new bill.

At the same time, ag groups are pleased with some other parts of the fiscal cliff package, like the estate tax provisions and extension of alternative energy tax incentives. The estate tax was permanently set through the legislation at a rate of 40 percent on estates valued at $5 million, or $10 million per couple – better than the 55% on $1 million or more that was scheduled to become law.

The theme set by all is to continue working with the new Congress and hope that the nine month extension doesn’t mean it will be delayed and down to the wire – or past it – again at the end of 2013.