$36 billion. That's the gulf that divides the House and Senate on just 1 of the 12 titles in the farm bill debate. Last Thursday, the House of Representatives passed a nutrition package that cuts $40 billion over the next 10 years from food assistance formerly known as the Supplemental Nutrition Assistance Program (SNAP) for low-income Americans. Earlier this summer, Senate cuts in its farm bill package were pegged at $4 billion. That's a 10-fold separation for those doing the math.
The next step in potentially passing a new, five-year farm bill is having House leadership appoint conference committee members as the Senate covered that task months ago. Once appointed, the political debate will ensue as leaders try to marry the Senate bill and the two House bills (the remaining 11 components of the farm bill were passed).
For those in dairy circles, rest assured, matters like the Dairy Security Act (DSA) and the Goodlatte-Scott Amendment that would eliminate potential milk supply control from the DSA will be down the priority list compared to the nutrition battle that is about to erupt.
Will we get a new farm bill this year?
There is no doubt the nutrition matter will be divisive in conference committee. The Democratic-controlled Senate wants no part of the steep cuts. The same goes for the President. Meanwhile, the Republican-controlled House passed the measure on a 217 to 210 vote in a spirit that harkened back to the welfare reform of the 1990s, reported Politico. In that Thursday vote, no House Democrats voted for the measure.
Presently, 48 million or roughly 15 percent of Americans get some form of food assistance. The $40 billion in proposed cuts would represent a 5 percent reduction to the SNAP program.
Bottom line, the farm bill was once a bipartisan effort. That cannot be said this time around. The $36 billion divide could simply be impossible to bridge and leaves all those in farm country without a clear direction on the future if the Senate and House Conference Committee cannot agree on the nutrition issue.
(c) Hoard's Dairyman Intel 2013
September 23, 2013