106th Congress promises to be busy

Dairy Foods, Feb, 1999 by Roger Eldridge

The 106th Congress, which began in January, is shaping up to be a busy session where agriculture is concerned - and that includes dairy. In fact, I think it will be as busy as previous Farm Bill years, and possibly as contentious.

With Federal Order reform scheduled for enactment this October, the big question is will Congress take action to legislate Option 1A (regarding the level of Class I price differentials) if Agriculture Secretary Dan Glickman chooses Option 1B? In my opinion, they will.

The controversial question of renewed and extended authority for dairy compacts will also be raised again. Current House leadership seems inclined to favor compacts. This does not mean, however, that additional compacts are a foregone conclusion.

The major question facing the producer side of the dairy industry is what program will we support in place of the current price support program, which ends Dec. 317 The National Milk Producers Federation has already begun to evaluate life without supports, and has assembled its Dairy 2000 Task Force to review options. Some possibilities include extension of the current program, deficiency-type payments similar to those used by other agricultural commodities, a voluntary export program, a domestic use enhancement program, as well as domestic and international donations.

Renewal of fast track trade authority may surface in the 106th Congress. We hope the president would strongly support such a measure this time around, in contrast to last year's lackluster effort on his part. The real question on fast track is will Congress be in any mood to give the president the right to negotiate anything. If not, fast track will have to wait until after the 2000 elections.

Other dairy policy agenda items include further exploration of risk management tools and the possible review of and additional oversight into commodity promotion programs. As in the last Congress, tax initiatives beneficial to businesses and farmers may also be a subject for legislation.

Much of what happens in Congress will depend on the larger political dynamics between Capitol Hill and the White House, and no one can predict what that will mean for dairy policy - except that almost anything is possible.

Roger D. Eldridge is vice president of government relations for the National Milk Producers Federation, Arlington, Va. Prior to joining NMPF in June of 1998, he worked in the corporate government and member relations areas of Mid-America Dairymen and its successor Dairy Farmers of America.