What Happens if Farm Bill isn't Passed

What Happens if Farm Bill isn’t Passed

??I’m KayDee Gilkey with the Northwest Farm and Ranch Report.

Well, one of the major topics of 2012 has been the Farm Bill and its passage. We are now down to the wire. What will happen if the year ends with out a Farm Bill passage or extension?

USDA Secretary Tom Vilsack shares his department has been doing research on the permanent 1949 Farm Bill Law -- which is what will be resorted to if New Year arrives with Farm Bill resolution.

Vilsack: “We are obviously looking back in history to the limited periods of time that we had to consider this. We are trying to make sure we understand the process was in the past and how to improve upon it, if it can be improved upon.”

For nearly 90 percent of the Farm Bill -- the nutritional SNAP portion and federal crop insurance it will continue --business as usual but it is that remaining 10 percent that affects many farmers directly that will see big changes.

On January 1, the dairy price support program itself will expire, becoming the first program to revert to permanent law.  Under permanent law, government-supported dairy prices would be approximately four times higher than current law and about twice as high as current market prices. 
Grain and other commodities would revert to the permanent law once the new 2013 crop is ready for planting.

Vilsack: “The best outcome would be for Congress to do its job in the remaining time this year to pass a five-year bill and to make it a priority.”