Dairy Security Act Preferred by Over 50 Organisations10 May 2013
US – A joint letter has been signed by 52 dairy organisations to the House Agriculture Committee, stating that the upcoming Farm Bill should include the Dairy Security Act (DSA).
The letter states that the DSA will provide a sure footing for the industry, highlighting the conditions that led to the development of the DSA following the dairy slump of 2009.
Rival proposal, the ‘Dairy Freedom Act’, has been downplayed by the coalition of national and state dairy bodies. They have warned that the Goodlatte-Scott plan will weaken the safety net for farmers in order to benefit dairy processors.
The letter says that “Without the discipline offered by market stabilization, low milk prices will continue for longer periods. This is detrimental to farmers. Low milk prices will lead to more government outlays. This is detrimental to taxpayers. The Dairy Freedom Act is supported by processors precisely because it offers them the prospect of lower milk prices, subsidized by government insurance payments. This scenario is not sustainable. Free margin insurance alone is a costly ruse.”
The farm groups assert that “Market stabilization sends a clear signal to farmers participating in thisprogram that a bit less milk is needed. Not only does this hasten a rebound in low-margin situations, it reduces the cost of the program to the government.”
The joint letter points out that “The real threat to the growth of our domestic dairy industry is not a market stabilization program that will only rarely activate; it’s the further damage to our dairy producer sector that would result from an ill-conceived processors’ dream plan to assure themselves a sea of taxpayer-subsidized milk.” Also, the letter notes, the DSA is “a voluntary approach to risk management, which offers producers the choice to participate.”
“The U.S. dairy industry is demonstrating a level of unity and support for the Dairy Security Act that is unprecedented for our industry. These organizations share the belief that the status quo is not an option for our future, and we stand united behind the Dairy Security Act as a rare opportunity for the dairy industry to collectively support reasonable, financially-sound changes to our Federal policies,” said the letter.
TheCattleSite News Desk