"Milk cliff" averted, too

A man shops at Manhattan grocery store March 17, 2009 in New York City. / Spencer Platt/Getty Images

The "fiscal cliff" is not the only "cliff" averted in Congress' last-minute negotiations: The so-called "milk cliff" was also avoided - for now. As part of the "fiscal cliff" deal, Congress passed a temporary extension of several agriculture subsidies, including one that would avoid a drastic spike in milk prices.

Because Congress was unable to pass an extension of the farm bill before the end of the year, milk prices were expected to rise to $7 or $8 a gallon in the new year because the milk subsidy program would revert back to an antiquated formula that was implemented in 1949. But a provision written by "fiscal cliff" negotiator Senate Minority Leader Mitch McConnell, R-Ky., was added to the "fiscal cliff" bill and Congress passed a nine-month extension of the current subsidy program, which will keep milk prices stable.

While the fix takes care of the most immediate concern to most Americans - milk prices - it also extends $5 billion worth of government subsidies for commodities such as corn and soybeans, regardless of whether farmers grow crops. While farmers covet the expensive subsidy, critics decry it as wasteful, misdirected government spending.

Other programs, however, were cut, including conservation, organic growing, and fruit and vegetable programs.

Senate Agriculture Committee chairman Sen. Debbie Stabenow, D-Mich., praised the last-minute extension of the dairy program, but said she was disappointed in the contents of the rest of the bill. "I am deeply concerned that Republican Leader Mitch McConnell insisted on including an incomplete Farm Bill extension that ends funding for important parts of the bill," she wrote in a statement. "Senator McConnell insisted on a partial extension that reforms nothing, provides no deficit reduction, and hurts many areas of our agriculture economy"

Farming interest groups lambasted the bill. "The deal is blatantly anti-reform," the National Sustainable Agriculture Coalition wrote in an abrasive statement. "The message is unmistakable - direct commodity subsidies, despite high market prices, are sacrosanct, while the rest of agriculture and the rest of rural America can simply drop dead.

The Senate passed a farm bill extension in June and but the House never voted on it or its own version, leading to the version passed last night. Congress will now have until the next fiscal year, which begins Oct. 1, to pass a more typical five-year extension.

[TJphoto]

"If you think the problems we cause now are bad, just wait until you see our solutions". A demotivational poster from Despair. It's so true!

[roth5101]

Subsidies are uncalled for and unnecessary. Even the mention of $7.oo/gallon of milk makes my blood boil.
Farmers, wake up, you have to work like all the rest of us for
your money. Quit using the average
American for your "cushion money".

[nolongersouthern]

As a scientist turned small time truck farmer who grows heirloom produce, eggs, and meat, I have to pay for everything. In TN, there are no grants, subsidies, etc. to help me. But there is plenty to help those described in this article. In fact, one of our state reps and our Tea Party leaning Congressperson (Marsha Blackburn) personally benefit greatly from such legislation. In addition, the farm agent one has to go through to apply for state grants usually gets said grants (he says he knows how to write them...), via wife's application, before anyone else does. Still, it is geared for the larger agribusiness people. But, here, it is truly in who you know or who your family is.

You should see how well off the people around us who grow corn, soy, cotton are thanks to subsidies and if one looks up the annual subsidies they get (can be found on the net through USDA), you would know who the real welfare queens/kings are and it ain't the little producer of actual, local foods! These guys lease land for about $100/year for tens to hundreds of acres from others who can't farm and they rake in the dough both on the commodities and the tax dollars given to them.

[lnytnz]

stop all subsidies. this is one cliff we should have gone over. contrary to popular belief milk is one of the worst things to put in your body