House Releases Its Version of Farm Bill

July 5, 2012 10:59 AM

Cong. Frank Lucas (R., Okla.) and Collin Peterson (D., Minn.) released a 557-page "discussion draft" of the House version of the Farm Bill this afternoon.

Lucas chairs the House Agriculture Committee; Peterson is ranking minority member. Dairy provisions in the bill mirror those in the Senate-passed version, though there are some differences.

For example, the Senate would continue the Milk Income Loss Contract program until the Dairy Margin Protection and Market Stabilization Programs would take effect. The House version offers dairy producer the opportunity to sign up for retroactive protection of the Margin Protection and Market Stabilization Programs. Indemnity payments, if they are triggered, would be paid once the program takes effect.

The House version also sets premium rates for the supplement margin protection program--1¢/cwt for $4.50/cwt protection, 4¢/cwt for $5.50 protection and 9¢/cwt for $6.50 protection for less than four million lb. of annual coverage. For coverage above 4 million lbs., those rates jump to 1.5¢/cwt, 8.1¢/cwt and 23¢/cwt.

Both House and Senate versions require producers who sign up for margin protection to also participate in the Market Stabilization Program when triggered.

The House Ag Committee will have a hearing on the bill July 11. The full draft of the bill can be read here. The dairy portion, Section D, begins on page 77.




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