Missouri Dairy Business Update Commercial Agriculture
Volume 2, Number 4

April 2002

Farm Bill - Dairy Policy Update

House-Senate Farm Bill Conference

As of the time this newsletter was written, 4/23/2002, a final Farm Bill had not been passed by house and senate. According the House Ag Committee web site, the latest compromise on dairy policy as settled on 4/18/2002 is as follows:


Maintain a permanent $9.90 Milk Price Support Program and establish a 3 1/2 year National Dairy Program that makes payments to all U.S. producers (using the Senate farm bill formula for the Northeast dairy program). Payments are made on up to 1.8 million lbs. of production per farm.
    Cost of Price Support -- $773 million.
    Cost of National Dairy Program -- $1.005 billion.

According to Dairy Herd Management, "At press time late Tuesday afternoon, [April 23, 2002], the leading proposal was a direct payment program that pays producers 45% of the difference between the $16.94 target price and the Boston Class I price. Right now the debate centers around at what level to cap payments, says David Carle, press secretary for Sen. Patrick Leahy, D-Vt. The House favors a cap of 1.8 million pounds (about 100 cows) while the Senate favors a cap of 3 million pounds (about 167 cows)."

To follow the latest changes, (or even listen to the committee live), you can log onto the Senate Ag Committee or the House Ag Committee site at:




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