Source: International Dairy Foods Association
Goodlatte–Scott Offers Free Catastrophic Coverage
The amendment provides margin protection for farmers when margins drop below $4 at no cost for the first 4 million pounds of production. With nearly 90% of all dairy farms’ production under 4 million pounds, the amendment effectively provides catastrophic coverage to the majority of farmers at no cost. Margin coverage under $4 for over 4 million pounds of production will cost only $0.03.
Goodlatte–Scott Helps Balance Our Budget; Does Not Increase Costs to Taxpayers
According to the Congressional Budget Office, the amendment will save $47 million over ten years, more than the bill’s $38 million. It allows market forces to provide incentives to balance supply and demand, instead of imposing a new burdensome government program that will reduce producers’ incomes to limit milk supplies and increase costs to consumers.
Goodlatte–Scott Rejects Growth Management For The Dairy Industry
The “growth management” program in the bill, called stabilization, will hamstring the industry by limiting milk supplies and harming dairy exports. The amendment eliminates that program. Under the amendment, there is no restriction on producers’ ability to produce and market milk at any time, and a producer’s production history is calculated in the same way as base coverage under the bill. In addition, producers can annually select the margin level and percentage of production history covered.
Goodlatte–Scott Covers Up To 80% Of Every Dairy Producer’s Production History
The amendment offers the same catastrophic coverage at the $4 margin level at up to 80% of production history up to 4 million pounds of production as does the bill.
Goodlatte–Scott Allows Annual Producer Selection of Margin Insurance Coverage
The amendment specifically states “that at the time of registration of a dairy producer in the margin insurance program . . . and ANNUALLY THEREAFTER under the duration of the margin insurance program, an eligible dairy producer may purchase margin insurance.” Producers are further allowed to select a coverage level in any increment of $0.50 with a minimum of $4 and a maximum of $8 and a percentage of coverage between 25% and 80% of production history.
Goodlatte–Scott Helps Dairy Farms of All Sizes