Congress has not yet passed the continuing resolution (CR). House Speaker Mike Johnson’s (R-La.) leadership team is said to be discussing a Plan B amid conservative opposition and vocal criticism from President-elect Donald Trump’s top allies, Politico first reported.
Johnson is reportedly discussing dropping $100 billion in disaster aid plus other attachments and instead passing a “clean CR” — then dealing with other issues in the new year, according to two Republicans with knowledge of the conversations. That would mean dropping some funding, including $31 billion in disaster and financial aid for farmers and a one-year extension of the farm bill, among other items – at least for now.
The “dairy cliff” and the farm bill are interconnected concepts in U.S. agricultural policy that have significant implications for dairy farmers, consumers, and the broader economy. The term “dairy cliff” refers to a potential scenario that could occur if Congress fails to pass a new farm bill or in this case extend the current one before it expires. Here’s what it entails:
Reversion to outdated law: Without a new farm bill or extension of the existing one, agricultural policy would revert to the Agricultural Act of 1949, also known as “permanent law.”
Price support mechanism: Under this outdated law, the government would be required to purchase dairy products at significantly higher prices than current market rates.
Dramatic price increase: This could potentially double the price of milk, with estimates suggesting it could rise from around $3.65 to $7 per gallon,
Market disruption: Such a drastic price increase would likely cause severe disruptions in the dairy market, affecting consumers, farmers, and the entire supply chain.
Also, soybeans are not covered under permanent law. The commodities that would be supported under permanent law include:
Dairy
Wheat
Rice
Cotton
Corn