H.R.294 - Dairy Farm Resiliency Act (119th Congress)
Summary
H.R. 294, the Dairy Farm Resiliency Act, proposes amendments to the Agricultural Act of 2014, specifically concerning the dairy margin coverage (DMC) program. The bill aims to update the production history calculation for DMC and increase the Tier I and Tier II coverage limits. It adjusts the production history calculation to use the most recent three-year history, calculated every five years, instead of using the 2011-2013 calendar years.
Expected Effects
If enacted, this bill would change how dairy farmers' production history is calculated for the DMC program. It would also increase the coverage limits for Tier I and Tier II premiums, potentially offering greater financial protection to dairy farmers. These changes could lead to more stable incomes for dairy farmers and greater resilience in the dairy industry.
Potential Benefits
- Improved Financial Security for Dairy Farmers: By updating the production history calculation and increasing coverage limits, the bill aims to provide better financial protection against fluctuating milk prices and production costs.
- Increased Program Accessibility: The updated production history calculation may allow more farmers to qualify for the DMC program, especially those who have started or expanded their operations more recently.
- Enhanced Dairy Industry Stability: By providing a more robust safety net, the bill could contribute to the overall stability and viability of the dairy industry.
- Modernized Agricultural Policy: Updating the Agricultural Act of 2014 ensures that agricultural policies remain relevant and responsive to the evolving needs of the dairy industry.
- Support for Rural Economies: A healthy dairy industry supports rural communities and economies that depend on agriculture.
Potential Disadvantages
- Potential Cost to Taxpayers: Increased coverage limits and program accessibility could lead to higher government expenditures on the DMC program.
- Market Distortions: Government support programs can sometimes distort market signals and lead to overproduction or inefficient resource allocation.
- Complexity of Implementation: Changes to the production history calculation and coverage limits may require complex administrative procedures and could create confusion among farmers.
- Limited Scope: The bill focuses solely on the dairy industry and does not address broader issues affecting the agricultural sector as a whole.
- Uncertainty of Long-Term Impact: The long-term effects of the bill on dairy farm profitability and industry structure are difficult to predict.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), which allows Congress to promote the well-being of the nation. Additionally, Article I, Section 8 grants Congress the power to regulate commerce, which includes agricultural products. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).