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House of Representatives passes stopgap dairy cliff legislation

The measure would extend current law until January 31, but is opposed by Senate Democrats.

December 13, 2013
KEYWORDS dairy / farm bill
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House of Representatives passes dairy extension

The House of Representatives passed a measure to extend the current farm bill until January 31 in order to avert a potential sharp increase in dairy prices tied to the lapse in farm policy. On December 31, dairy subsidies are set to revert to "permanent law" written in 1949 that could double the price of milk in grocery stores.

Michigan Democrat Debbie Stabenow, chairman of the Senate Agriculture Committee, says many senators oppose the extension because it could trigger $5 billion in "direct payment" subsidies to growers. Many Democrats have also argued that the potential for a so-called dairy cliff has been overblown.

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