As the drama continues to play out in Washington today over the Federal Budget extension, it appears most dairy programs will continue to operate.
Dairy price supports and the Milk Income Loss Contract payments are well above trigger levels, and so there are no payments to lose.
Other programs that the government will allow to continue likely have one or more of three components:
• Shut down would result in economic harm and disruption.
• Shutdown would endanger health and safety.
• Defense and security.
In addition, programs funded by user fees typically are also exempt. The Federal Milk Marketing Orders are funded by some $60 million in producer and processor user fees to pay some 340 employees, and thus would be exempt. Some sources speculate there could possibly be some delay in data collection and analysis of dairy price reports by the National Agricultural Statistics Service. How disruptive that would be, even if does occur, depends on the length of the government shutdown.
Dairy grading and inspection services fall under the health and safety exemption. The American Meat Institute has also asked the Obama Administration for clarification on meat inspection in slaughter plants. Closure of such plants could result in the loss of $3 billion in daily economic activity, says AMI.
