Political dairy expert Charlie Garrison explains the details of the proposed provisions.
The Dairy Subtitle in the House Agriculture Committee’s Discussion Draft of its farm bill is similar to the language in the bill passed by the Senate last month, says Charlie Garrison, political advisor for Western United Dairymen (WUD).
Writing in today’s “WUD Friday Update,” Garrison says the House draft farm bill contains both the Dairy Producer Margin Protection Plan (DPMP) and the Dairy Market Stabilization Plan (DMSP). It extends the farmer-funded dairy promotion and research program, forward contracting for Federal Milk Market Order Classes II, III and IV and the Dairy Indemnity Program.
The House draft would eliminate the Milk Income Loss Contract (MILC) Program, the Dairy Product Price Support Program (DPPSP), the Dairy Export Incentive Program (DEIP) and the FMMO Commission established by the 2008 Farm Bill.
The DPMP uses the National All-Milk Price minus a national feed cost calculation to establish the margin levels for the insurance program. Margins are calculated monthly by USDA and insurance payments would be made to participating producers if the margin average for a specific two-month period is below the level of coverage chosen. Basic margin insurance of $4 on up to 4 million pounds of milk is provided at no out-of-pocket cost. Supplemental insurance can be purchased in 50-cent increments up to $8.
Read Garrison’s article here.