Food stamps and subsidies for farmers are two of the sticking points as Congress negotiates the farm bill. If something isn’t done by next week, it will revert to the original 1930s 'farm law' on New Year’s Day.

By Patrik Jonsson, Staff writer / December 6, 2013

Congress is at another impasse. This time, America is facing a countdown to the “dairy cliff.”

The farm bill, which since the Depression has offered risk-taking farmers price supports and guarantees while helping the poor by providing free basic foods, has become the latest victim of a divided Washington desperate to put the brakes on spending while tweaking social welfare policies.

“This is a historic breakdown,” writes the editorial board of The Des Moines (Iowa) Register newspaper.

While the main issue is the extent of cuts to food stamps, now called SNAP (or Supplemental Nutrition Assistance Program), the stakes are high enough to potentially touch just about every American family – namely by doubling milk prices to as much as $7 a gallon.

If the $80 billion farm bill isn’t hammered out by next week, it will revert to the original 1930s “farm law” on New Year’s Day.

House Republicans put things in motion this summer by demanding a $4 billion cut from SNAP payments, while allowing states to attach work requirements to the benefit. Senate Democrats, backed by President Obama, have offered a far more modest $400 million cut, with no new work requirements.

Also on the table are direct payments paid to farmers regardless of actual prices or yields.

http://www.csmonitor.com/USA/Politics/2013/1206/Milk-for-7-a-gallon-Farm-bill-impasse-could-send-US-off-dairy-cliff