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Sen. Bob Casey Offers Dairy Reform Alternative

October 13, 2011

 Sen. Bob Casey (Dem., Penn.) has offered the first real legislative alternative to the National Milk Producer Federation’s "Foundation for the Future" dairy reform package.

"By simplifying the system and rewarding innovation, our farmers will be better prepared to compete in today’s marketplace," says Casey.
Casey’s "Dairy Advancement Act,"  S. 1682, would not include any supply or growth management component, but would continue the Milk Income Loss Contract (MILC) program or allow dairy producers to enroll in the Livestock Gross Margin-Dairy program. The bill also repeals the Dairy Product Price Support Program, and make low interest loans available to processors to retrofit their plants to shift products that have broader demand.
The plan would also direct the Secretary of Agriculture to establish a two-class system under Federal Milk Marketing Orders. The first class would be for fluid milk; the second for manufactured products. (The current system includes four classes: Fluid, soft dairy products, cheese and milk powder.)
The bill would also enhance market transparency by increasing the frequency of dairy price reporting.
The bill received immediate support from processors. "Most importantly, the bill will not hamstring our industry with a new government program to limit milk supply as does the controversial Peterson [Dairy Security Act of 2011] proposal," says Connie Tipton, president and CEO of the International Dairy Foods Association.
The National Milk Producers Federation were cool to the proposal. In a statement released this morning, NMPF said: "NMPF remains focused on passing legislation that most closely mirrors our Foundation for the Future program, specifically the Dairy Security Act (DSA) that has been introduced in both the Senate and House. The DSA is the end result of two years of analysis and debate by dairy farmers. We believe it provides the best means to protect producers equity, while allowing growth and stabilizing markets as needed."

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COMMENTS (4 Comments)

Roger - Osceola, WI
I agree, a better plan. This give option of MILc and LMG Insurance which I like. I prefer the a free market system. I have been contracting inputs and outputs for 12 years. Not always perfect, but keeps me in business. I added the LGM Insurance last year to my plan. We do not need another complicated plan to implement and spend another whole day at a FSA office!
8:14 AM Oct 16th
James Maroney - Leicester, VT
Dairy farmers pay attention: If the processors are for the Casey plan you don't need to know anything more. It must MUST be against your interests. Why would the processors be against supply control? Because lower supply raises prices! Why do the farmers insist on expanding production when there is already 12B lbs too much milk in the system? Wake UP! J
7:13 AM Oct 15th
I think I like this bill. It is certainly better than the supply management scheme proposed in FFTF.

(1) It gets rid of the price support program that interfered with our desire to export in periods of low prices. (Instead we were lazy and we sold to the goernment.)

(2) It does not foolishly make us cut production when the world is anxious for our quality milk products, and we should be doing all we can to develope good relationships with our new overseas customers.

(3) It does give the small farmer a boost with MILC payments during periods of low prices.

I sure hope the Casey Bill gets good press coverage and replaces the foolishness of "Foundation for the Future", and its complicated plan for cutting production when the world is in need of our good dairy products.

Thanks for listening,

George Mueller, Clifton Springs, NY

8:42 PM Oct 13th
Smallest Dairy Farmer
Finnally...............some common sense.........We don't need government control.........so if you think you must hand out payments...can't stop you and not taking it would be...........UH impolite. But if you must simple better............Would have preferred payment strictly on quality of milk rather then 2 classes...but again simpler is still better.... 2 is better then more!!
10:12 AM Oct 13th



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