Dairy producer groups oppose DMSP
PrintSeveral dairy producer organizations have joined in opposing the Dairy Security Act, included in the House Ag Committee’s 2012 Farm Bill discussion draft. In a letter to House Ag Committee chair Frank Lucas (R-Okla.) and Ranking Member Collin Peterson (D-Minn.), the groups, including California Dairies, Inc.; Dairy Business Milk Marketing Cooperative; Dairy Policy Action Coalition; National All-Jersey, Inc.; North East Dairy Producers Association, Inc.; and Wisconsin Dairy Business Association, wrote that they have “continuously raised objections over the impact the Dairy Security Act (supply controls) will have on our members."
Minnesota Milk Producers Association also sent a separate letter in support of a safety net program without the Dairy Market Stabilization Program (DMSP).
“The Dairy Security Act remains a risk to America’s dairy industry, yet is being sold as the solution,” the joint letter said. “The program would attempt to manipulate both supply and demand for milk in order to temporarily push milk prices higher. A short-term gain in milk price from supply management will result in a long-term decrease in milk price because of the lost global market share. Not being a reliable supplier threatens the U.S. competitive edge in international markets, reducing our opportunity for continued success in export markets.
“The nation’s dairy producers support reform, but the DMSP is the wrong direction. Reforms should not reduce exports, cut jobs and add more regulations. The Dairy Title should allow the dairy industry a chance to compete and grow without government regulating the amount of milk a farmer can produce. Our citizens and the world population deserve an abundant, affordable and sustainable food supply.
“The members of our associations ask you to support a margin insurance program that will help dairy producers without including a government controlled supply management program,” concluded the letter.
The text of the letter follows:
July 9, 2012
Honorable Frank Lucas
2311 Rayburn HOB
Washington, DC 20515
Honorable Collin Peterson
2211 Rayburn HOB
Washington, DC 20515
Dear Chairman Lucas and Ranking Member Peterson,
We, the undersigned organizations, representing dairy producers throughout the nation, write to express our opposition to the inclusion of a new Dairy Market Stabilization Program (DMSP) in the upcoming markup of the House Agriculture’s Farm Bill. We have continuously raised objections over the impact the Dairy Security Act (supply controls) will have on our members.
The Dairy Security Act remains a risk to America’s Dairy Industry, yet is being sold as the solution. The program would attempt to manipulate both supply and demand for milk in order to temporarily push milk prices higher. A short term gain in milk price from supply management will result in a long term decrease in milk price because of the lost global market share. Not being a reliable supplier threatens the U.S. competitive edge in international markets, reducing our opportunity for continued success in export markets.
Our organizations believe that DMSP is contrary to the goals of limited government intrusion to spark economic growth. A supply control program that will directly intervene in markets and increase milk prices will ultimately hurt producers as well as processors by stifling industry growth. A national dairy policy which allows the market to determine prices paid with the addition of a new risk management tool such as Margin Protection Insurance will help dairy producers withstand free market conditions; much like the other commodities are treated in the Farm Bill.
The nation’s dairy producers support reform, but the DMSP is the wrong direction. Reforms should not reduce exports, cut jobs, and add more regulations. The Dairy Title should allow the dairy industry a chance to compete and grow without government regulating the amount of milk a farmer can produce. Our citizens and the world population deserve an abundant, affordable and sustainable food supply.
The members of our associations ask you to support a margin insurance program that will help dairy producers without including a government controlled supply management program.
Sincerely,
California Dairies, Inc.
Dairy Business Milk Marketing Cooperative
Dairy Policy Action Coalition
National All-Jersey, Inc.
North East Dairy Producers Association, Inc.
Wisconsin Dairy Business Association
Cc: House Agriculture Committee Members
