NMPF, IDFA both endorse hard-fought dairy title
January 27, 2014 | 09:13 PM
The National Milk Producers Federation and International Dairy Foods Association both endorsed the farm bill conference report, despite the difficulties in writing the new dairy title.
“Over the past week, NMPF has worked with agriculture leaders in the House and Senate to develop a margin insurance program that will offer dairy farmers an effective safety net in the absence of the market stabilization component featured in our original program,” said NMPF President and CEO Jim Mulhern.
“That process is now complete,” he continued. “Despite its limitations, we believe the revised program will help address the volatility in farmers’ milk prices, as well as feed costs, and provide appropriate signals to help address supply and demand. By limiting how much future milk production growth can be insured, the measure creates a disincentive to produce excess milk. The mechanism used is not what we would have preferred, but it will be better than just a stand-alone margin insurance program that lacks any means to disincentivize more milk production during periods of over-supply.”
“Importantly, the program doesn't discriminate against farms of differing sizes, or preferentially treat those in differing regions.”
“The revised bill also establishes a system for the U.S. Department of Agriculture (USDA) purchase consumer-packaged dairy products during low-margin periods, which will stimulate demand and help dairy farmers when they need it most, and only then.”
The International Dairy Foods Association, which had bitterly opposed what Boehner called “supply management” in the dairy title, said the bill “represents historic reform of our nation’s dairy policies.”
IDFA praised the agreement for creating the new margin insurance program but rejecting government limits on milk supplies.
“This is a major step toward moving our dairy industry away from the failed agriculture policies of the past and toward policies of the future that will enable our entire industry to grow and capture new markets,” IDFA said.
“The conference report rejects a proposed new regulatory burden on dairy food manufacturers and will allow dairy companies, particularly those that are now exporting about 15 percent of the milk produced in this country, to continue to grow and create thousands of new jobs.”
“Over the past week, NMPF has worked with agriculture leaders in the House and Senate to develop a margin insurance program that will offer dairy farmers an effective safety net in the absence of the market stabilization component featured in our original program,” said NMPF President and CEO Jim Mulhern.
“That process is now complete,” he continued. “Despite its limitations, we believe the revised program will help address the volatility in farmers’ milk prices, as well as feed costs, and provide appropriate signals to help address supply and demand. By limiting how much future milk production growth can be insured, the measure creates a disincentive to produce excess milk. The mechanism used is not what we would have preferred, but it will be better than just a stand-alone margin insurance program that lacks any means to disincentivize more milk production during periods of over-supply.”
“Importantly, the program doesn't discriminate against farms of differing sizes, or preferentially treat those in differing regions.”
“The revised bill also establishes a system for the U.S. Department of Agriculture (USDA) purchase consumer-packaged dairy products during low-margin periods, which will stimulate demand and help dairy farmers when they need it most, and only then.”
The International Dairy Foods Association, which had bitterly opposed what Boehner called “supply management” in the dairy title, said the bill “represents historic reform of our nation’s dairy policies.”
IDFA praised the agreement for creating the new margin insurance program but rejecting government limits on milk supplies.
“This is a major step toward moving our dairy industry away from the failed agriculture policies of the past and toward policies of the future that will enable our entire industry to grow and capture new markets,” IDFA said.
“The conference report rejects a proposed new regulatory burden on dairy food manufacturers and will allow dairy companies, particularly those that are now exporting about 15 percent of the milk produced in this country, to continue to grow and create thousands of new jobs.”
