Farmers Urge House Negotiators to Leave Supply Management Alone15 May 2013
US - Wisconsin’s Dairy Business Association (DBA) has written to House and Senate Agriculture Committee leaders, urging them to support margin insurance for dairy farmers without tying it to a supply management programme.
Progress with the Farm Bill is expected by the industry, with a final key policy choice remaining for the House and Senate Agriculture Committees. Producers await for the House to decide between the Dairy Freedom Act (DFA) (Goodlatte Scott) or Dairy Security Act (DSA).
While both policies will eliminate the Dairy Product Price Support Programme (DPPSP), Milk Income Loss Contract (MILC) and the Dairy Export Incentive Programme (DEIP), the DBA has opted for the DSA as it will expand government intervention into dairy markets.
In the letter to the Committe leader, DBA President, Jerry Meissner wrote in approval of government intervention whilst labelling the DFA as the 'worst' thing that could happen.
“As an organization comprised of both dairy producers and processors, we are in a unique position to explain why the Dairy Freedom Act is the best option for all of us in the dairy industry. And as producers and processors in Wisconsin, America’s second largest dairy producing state, we can tell you why the supply management program included in the Dairy Security Act would be the worst thing for our growing industry."
The DBA listed reasons for favouring the DSA, stating that it was 'effective in providing risk insurance' and that it incorporates the Dairy Market Stabilisation programme, which the DFA does not.
“Dairy industry growth should not be subject to any impediments,” the letter concludes. “By dropping the supply management program, the Goodlatte Scott dairy bill represents a true compromise that is broadly supported and won’t stand in the way of moving the 2013 Farm Bill forward. “
TheCattleSite News Desk