In a letter sent to members last week, California Dairies Inc. (CDI) went on record opposing the “discussion draft” of dairy reforms released by Cong. Collin Peterson (Dem., Minn.).
The discussion draft is a modified version of the National Milk Producer Federation's "Foundation for the Future" (FFTF) dairy reform package. CDI officicals complained that the discussion draft varied from the original FFTF proposal.
In fact, CDI found fault with all three legs of the discussion draft:
• The Dairy Market Stabilization Program “would inhibit CDI’s ability to export dairy products, pursue new markets, and retain its current global market position.” CDI also notes that half of the funds collected through the program in the form of over-production penalties would be retained by the Federal government to offset spending. “This amounts to an unexpected, unfair and unwarranted tax on dairy producers.”
• The Margin Protection Program “fails to recognize that a ‘one-size-fits-all’ margin insurance program will disadvantage those areas with historically higher feed costs and lower milk prices.”
• Federal Milk Market Order reforms to replace current product formula prices with a milk price survey would not increase producers’ milk prices.
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