Negotiators in Congress reportedly reached a deal for a new Farm Bill during the holiday recess, however several unresolved issues are delaying action, according to the Wildlife Management Institute. Provisions related to the nation's dairy industry appear to be one of the major sticking points.

"A longstanding dispute over dairy policy is holding up an agreement between U.S. House and Senate lawmakers on a new farm bill," House Agriculture Committee Chairman Frank Lucas said.

The disagreement has risen to very high levels in the House of Representatives. Collin Peterson, former Chairman of the House Agriculture Committee and current Ranking Member on the Committee, supports provisions that would guard against farmers producing too much milk and driving prices down. However, Speaker of the House John Boehner has steadfastly opposed the concept of the federal government managing the supply of milk.

While reaching a compromise on this issue appears to be difficult, both sides have a reason to arrive at an agreement. With the expiration of an extension of the 2008 Farm Bill on December 31^st last year, the U.S. Department of Agriculture (USDA) is technically now operating under permanent agriculture laws that were put in place in 1949 and 1938. These laws are clearly not appropriate for today's situation and using them to guide USDA's current programs would result in many undesirable consequences. In order to increase pressure on negotiators, Senate Majority Leader Harry Reid, is refusing to consider an extension of the 2008 Farm Bill in the Senate. USDA has been delaying incorporation of the permanent statutes but, without an extension of the 2008 law or passage of a new Farm Bill, the agency will have no choice but to operate their programs under the decades-old laws. This would quickly result in impacts affecting all citizens, such as the cost of milk rising to an estimated $7.00 per gallon, and place huge pressure on Congress to reach an agreement.

On a conservation-related item, several groups in the conservation community hope to include language in the new Farm Bill to reverse a provision that was included in the recent budget bill passed by Congress and signed by the President. That provision authorizes USDA's Natural Resources Conservation Service (NRCS) to charge a fee for the conservation technical assistance NRCS has been providing free of charge for decades. The obvious concern is that charging fees for conservation planning assistance will serve as a disincentive for farmers and ranchers to plan for basic conservation practices on their lands. At this point, it is unclear whether there is adequate support by lawmakers to incorporate language in the new Farm Bill to reverse this provision. (pmr)