(Radio Iowa) – U-S Ag Secretary Tom Vilsack says if congress fails to at least extend the current Farm Bill by year’s end, key programs — including one for dairy farmers — expire.

The Dairy Margin Protection Program was created in the 2018 Farm Bill. It provides payments to farmers when the cost of the milk they sell falls below the cost of production. There are over 800 dairy farms operating in Iowa today. Vilsack says the likely scenario is that the House and Senate will eventually vote to keep the 2018 Farm Bill policies in place until a new Farm Bill is developed.

Vilsack says the big stumbling block in negotiations on the 2023 Farm Bill has been whether to raise what are called “reference prices” for corn, soybeans, wheat and cotton to account for rising production costs. Those reference prices are used to calculate federal crop subsidies. Vilsack says it would cost 20 BILLION dollars over the next decade if those reference prices for corn and other commodities are hiked in the next Farm Bill.