Goodlatte, Scott Introduce Dairy Freedom Act

April 25, 2013 11:19 AM

Congressmen say the proposed legislation represents a true compromise on dairy policy and an alternative to the Dairy Security Act.

Source: Office of Congressman Bob Goodlatte

WASHINGTON, D.C. – Congressman Bob Goodlatte (R-Va.) and Congressman David Scott (D-Ga.) released the following statement after introducing the Dairy Freedom Act as an alternative to the Dairy Security Act:

"The Dairy Freedom Act represents a true compromise on dairy policy. We all agree on the need to reform and improve our current dairy policies – and our bill would do just that. The Dairy Freedom Act would provide producers with a viable safety net, without supply management or new administrative fees for dairy farmers.

"Supply management is contrary to the goals of limited government, economic growth and free markets. A supply control program puts federal government bureaucrats in the middle of market decisions by manipulating dairy prices, instituting dairy production quotas, and penalizing consumers. With budgets already stretched thin, higher milk prices would negatively affect American families, food manufacturers, retailers, and restaurants. The federal government has no business intervening in this market.

"With the House Committee on Agriculture’s markup of the Farm Bill set for May 15th, we hope this legislation will be considered as the base text of the Farm Bill’s dairy provisions. We look forward to continuing to work to Chairman Lucas and Ranking Member Peterson on common sense reforms for our nation’s dairy farmers."

Editor's note: The Dairy Freedom Act includes margin insurance, the difference between the all-milk price and feed costs. But it offers two levels of premiums. The first is for the first four million lb. of annual milk production; the second is for production above that level.

For example, at the $4/cwt margin protection level, the first four million lb. of margin insurance is free. After that, dairy producers are charged 3¢/cwt. At the $7/cwt margin protection level, the first four million lb. of insurance cost 18¢/cwt. After that, it’s 38¢/cwt.

Full text of the legislation is available here

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