Posted by JD Seller on December 25, 2012 at 23:22:11 from (208.126.196.144):
In Reply to: true or false ?? posted by Old Roy on December 25, 2012 at 21:51:47:
It is kind of true. Yes if the current farm bill is not extended or a new one written then the old 1940s bill goes into effect. That does have a parity provision that would raise the support price to about 3 times the current level.
What is also true is that congress can separate the dairy support out of the entire bill and pass something separate for it. Also they could just extend the whole current farm bill and things would not change in the dairy world.
If the support price would go to record high levels you would have a consumer back lash that would really hurt the diary industry. The fluid milk consumption has been falling any way. So you raise the price that much and you just kill the market that is drinking/using fluid milk. That would have a negative long term effect on that segment of the milk market.
I think the dairy part will be resolved. As for the rest. The real problem is the food stamp/SNAP program. This is an entitlement program that gives the Farm bill a black eye in my opinion. It should be separated out and added into the rest of the welfare programs. It should not be counted as an Ag subsidy.
School lunches too they should be part of the Department of Educations budget.
I also think that in times of record high grain prices there should be ZERO payments to grain farmers. The fact that there have been payments made in the last few years is an embarrassment to the Ag sector. The fact that there has been payments will come back to haunt us in the future. Those payments will be an anchor around our necks if/when the grain markets crash.
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