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Dairy Security Act Delay Has Caused $1 per cwt Losses

09 April 2013

US – Milk prices would have been $1 per cwt higher if the dairy security act had been introduced in 2012.

Farm prices in the Midwest were scrutinised at the Minnesota-Wisconsin Dairy Policy Conference where National Milk Producers Federation Chief Operating Officer, Jim Mulhern stated that he, as a Wisconsin farmer would be $44,000 better off if the Dairy Security Act had been introduced last year.

Despite House and Senate Agricultural Committee approval, the Dairy Security Act has not been voted on which, according to Mr Mulhern effects both tax payer and producer.

"I believe Congress will pass a farm bill this year, and when all the dust settles, DSA will be the dairy program in the final bill," he said. "Congress will adopt the DSA because it is the only program that truly provides an effective safety net without busting the budget.

"The plan’s combination of affordable margin insurance and a stabilization program to quickly send production signals to producers when market prices are falling is specifically designed to protect both farmers and taxpayers," added Mr Mulhern.

The alternative, a margin insurance only alternative, which has been proposed by milk processors is ‘irresponsible’ and ‘terrible’ Mr Mulhern added.

He went to say that this option would guarantee cheap milk for processors because it would cause over production.

What Mr Mulhern wants to see is a market stabilisation programme introduced that will balance supply and demand better.

He warned that a margin-only programme could prohibit small and medium sized producers due to expenses.

TheCattleSite News Desk

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