FarmPolicy

August 2, 2014

Bloomberg Video: How Will Immigration Reform Impact Agriculture?

Categories: Immigration

From Bloomberg News, Jan. 29, “Bloomberg’s Alan Bjerga discusses how President Barack Obama’s immigration reform will impact the agriculture industry. He speaks on Bloomberg Television’s ‘Bloomberg Rewind.’”

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Policy Issues; Budget, Ag Economy; and, Immigration

Farm Bill and Policy Issues

A news release yesterday from USDA’s Farm Service Agency (FSA) indicated that, “[USDA- FSA] Administrator Juan Garcia today announced that beginning Feb. 5, USDA will issue payments to dairy farmers enrolled in the Milk Income Loss Contract (MILC) program for the September 2012 marketings. The American Taxpayer Relief Act of 2012 extended the authorization of the Food, Conservation, and Energy Act of 2008 (the 2008 Farm Bill) through 2013 for many programs administered by FSA, including MILC. The 2008 Farm Bill extension provides for a continuation of the MILC program through Sept. 30, 2013.”

The release added that, “The payment rate for September 2012 is approximately $0.59 per hundredweight. The payment rate for October 2012 marketings is approximately $0.02 per hundredweight. The payment rate for November 2012 marketings is zero.”

A recent editorial at Hoard’s Dairyman Online noted that, “As far as dairy is concerned, 2013 will be much of the same with renewal of the MILC program (Milk Income Loss Contract), Dairy Export Incentive Program (DEIP) and dairy product price supports. Unfortunately, DEIP and the dairy price support program represent outdated safety net initiatives that offer no peace of mind for dairy producers nor does it account for the escalating price of feed. That being the case, neither will generate stability under current market conditions. While MILC was renewed with a $7.35 ration adjuster at 45 percent of production, it too offers no projected support based on current futures contracts. Plus, not all milk production is eligible due to its production caps.

“In light of the legislative stalemate, the Dairy Security Act (DSA) was kicked to the wayside. While it didn’t receive praise from many processors and a few producer groups due to production controls during periods of high milk supply, it did offer margin protection or insurance based on a balanced approach of milk prices and feed costs. The DSA also represented the broadest and most public dairy producer led policy discussion our industry has seen in some time.”

Meanwhile, Jim Dickrell noted on Tuesday at AgWeb Online that, “If the farm bill is ever to pass, it will have to go through a more normal legislative process, say lobbyists who have worked on Capitol Hill for years.

It cannot be wedged into larger budget bills that get rammed through Congress without debate.”

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