Milk prices could rise if farm bill not signed by 2014

WASHINGTON—A New Year’s deadline that could send the price of milk skyward looms over congressional negotiators as they try to reach agreement on a five-year farm bill. They’ve been tripped up by differences over the nation’s food stamp program and how to restructure farm subsidies.

The two chambers have been far apart on both issues for more than two years. But the leaders of the House and Senate Agriculture committees expressed optimism after a private meeting Wednesday that they may be able to find resolution in time to narrowly avert the expiration of dairy subsidies on Jan. 1. If those subsidies expire, new laws will kick in that could result in decreased dairy supply on the commercial market and higher prices for a gallon of milk.

Rep. Mike Conaway of Texas, a Republican on the House-Senate farm bill conference committee, said it is possible negotiators will hold a public meeting next week for the entire conference committee to settle some of the remaining issues. But with a final deal still elusive, it seems unlikely that Congress will finish the bill before the end of the year.

On Thursday, House Speaker John Boehner said the bill should be extended through January while negotiators work out their differences.

Finding a compromise on cuts to the nation’s $80 billion-a-year food stamp program has been the toughest obstacle over the last two years. The House passed a bill this summer that would cut $4 billion from food stamps—now known as the Supplemental Nutrition Assistance Program, or SNAP— annually and allow states to create new work requirements for some recipients.

The Democratic Senate, backed by President Barack Obama, passed a farm bill with $400 million annual cut, or a tenth of the House cut.