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Processors Support Dairy Safety Net Without Supply Management

March 15, 2012
 
 

Source: International Dairy Foods Association

Connie Tipton, president and CEO of the International Dairy Foods Association has submitted a statement for the record to the Senate Agriculture Committee, which is holding a hearing today, urging the committee to reject supply management proposals.

 
“Better risk management tools, including margin or other insurance products, for dairy farmers is the correct path forward for our industry,” Tipton wrote, “not direct government intrusion into dairy markets and increased regulatory burdens on food manufacturing businesses.”
 
Tipton went on to say that "instead of more and better risk management tools, however, some stakeholders believe that the government should intervene in markets to control price volatility. Such programs, often called supply management, have been tried and have failed in dairy and other sectors of U.S. agriculture. Similar policies have been rejected and are being eliminated around the world because they simply don’t work. Although policies that involve the government in commercial transactions between buyers and sellers are generally being discarded, a supply management program for dairy was proposed in the Dairy Security Act, H.R. 3062, introduced by Rep. Collin Peterson (D-MN) and according to many reports was included in the farm bill proposal sent to the Joint Committee on Deficit Reduction a few months ago.

Tipton encouraged the committee to adopt the solution on which the dairy industry agrees.
 
“There is a clear middle ground in this debate,” Tipton wrote. “Dairy food companies have endorsed the margin insurance program, provided that it is not attached to a supply management program. Such a program could be offered, even within the limited dairy baseline, by charging a small fee for a subsidized base coverage. We have supported making the USDA pilot program, called Livestock Gross Margin – Dairy, permanent and increasing funding beyond the current $20 million per year cap. Dairy savings accounts would also help dairy farmers manage their businesses through the volatility of world dairy prices. There are many dairy producers, as well as at least one of the largest dairy coops in the country, who support these alternative approaches.”
 
 

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COMMENTS (3 Comments)

Calvin D. Paulson - Harrisonburg, VA
Working againt those processors we sell to directly isn't the answer. From the grass roots of production to the table is our road at present time. Surplus management involves further processing, thats thier job, to retail& refuel our milk checks.Much more understanding of our destiny than anyone on the hill. Find one country that governement involvment in marketing has allowed growth. I would rather sell to the consumer, not work for them. We were there 10yrs ago, joint ventures got us out.
1:23 PM Mar 28th
 
MILKMAN1974 - FARWELL, TX
OF COURSE PROCESSORS ARE IN FAVOR OF THIS AT DAIRYMENS EXPENICE WE WILL HAVE TO PAY INSURANCE TO PROTECT US SO PROCESSORS CAN GET CHEAP MILK . HERE WE GO AGAIN EVERYBODY MAKING MONEY EXECPT DAIRYMEN
8:09 PM Mar 15th
 
MILKMAN1974 - FARWELL, TX
OF COURSE PROCESSORS ARE IN FAVOR OF THIS AT DAIRYMENS EXPENICE WE WILL HAVE TO PAY INSURANCE TO PROTECT US SO PROCESSORS CAN GET CHEAP MILK . HERE WE GO AGAIN EVERYBODY MAKING MONEY EXECPT DAIRYMEN
8:09 PM Mar 15th
 



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