DPAC continues to support Goodlatte-Scott amendment
The Dairy Policy Action Coalition (DPAC), a grassroots dairy producer organization, said it will continue to support the Goodlatte-Scott Amendment after a recent side-by-side study of two proposed dairy safety net programs was released by major university dairy economists this week.
The new study, titled “Goodlatte-Scott vs. the Dairy Security Act: Shared Potential, Shared Concerns and Open Questions” stated that both programs would be effective as risk management tools for dairy producers.
The Goodlatte-Scott Amendment offers a stand-alone margin insurance program while the Dairy Security Act requires farmers to participate in supply management, which limits their milk production during certain market conditions, in order to participate in their margin insurance program.
As a result of the findings, DPAC continues to reject the supply management provision in the DSA and continues to endorse the stand-alone margin insurance program proposed in Goodlatte-Scott. DPAC’s concern is that any supply management program would cause long-term damage to the relationships it has developed with dairy customers at home and around the world.
“With U.S. exports showing substantial growth, we do not need another government program that will harm our reputation as a dependable supplier to the global markets,” stated Rob Barley, of Star Rock Dairy in Lancaster, Pennsylvania. “The reality is that we can’t have growing dairy farms without a growing dairy industry.”
“We agree with The Dairy Security Act in proposing the elimination of the Dairy Product Price Support Program that sets a floor under certain dairy product prices,” Barley said. “However, it would be a huge step backwards to replace it with another government program that creates an artificial market like supply management that is proven to hurt exports and cost dairy industry “
It is anticipated that the Farm Bill may be considered as early as next month in Congress.
“We suggest dairy farmers contact Congressional Agriculture Committee members to express their concerns about the Dairy Security Act and support of the Goodlatte-Scott Amendment,” Barley said.