National Milk Producers Federation endorses proposal

By CAROL RYAN DUMAS

Capital Press

A farm bill proposal introduced Oct. 6 in both the Senate and the House includes dairy policy reform advocated by the National Milk Producers Federation.

The Rural Economic Farm and Ranch Sustainability and Hunger, or Refresh, Act was introduced in the Senate by Sen. Dick Lugar, R-Ind., and in the House by Rep. Marlin Stutzman, R-Ind. Both serve on the ag committees of their respective houses.

Refresh includes the language of the Dairy Security Act of 2011 introduced by Reps. Collin Peterson, D-Minn., and Mike Simpson, R-Idaho.

"It is nearly identical," said Dana Brooks, NMPF's senior vice president of government affairs.

It would replace the Dairy Price Support Program and Milk Income Loss Contract with a voluntary margin-insurance program that covers 80 percent of a producer's production history when margins between milk price and feed costs falls below $4 per hundredweight.

It would also give producers the option to participate in a supply-management program, but requires participation by dairymen who enroll in the margin-insurance program.

It would require USDA to reform pricing formulas in the federal milk marketing order system by moving from the current end-product pricing system to a competitive milk pricing system.

It also instructs the secretary of agriculture to conduct a study on the effects of eliminating federal milk marketing orders.

NMPF says introduction of the Refresh Act is a major step forward in improving dairy policy.

NMPF efforts to overhaul dairy policy are now in a good position to succeed with a ranking Democrat on board on the House side and a respected Republican on board on the Senate side, Brooks said.

"We've gotten a lot of attention from legislators," she said.

Lugar has often repeated that he is looking for industry consensus, and NMPF is pleased his bill includes a dairy policy package, she said. NMPF has worked with producers and processors to gain that consensus.

"Our leaders know how difficult it is to get 100 percent consensus. We have to move with a majority to go forward," she said.

The Refresh Act was introduced as S1658 and HR3111. The legislation, which addresses subsidies, conservation, federal nutrition programs, renewable energy, and ag research, will save an estimated $40 billion over 10 years, according to Lugar and Stutzman.

The Dairy Security Act, introduced as HR3062, would reduce spending $130 million over 10 years, according to the Congressional Budget Office.

The International Dairy Foods Association opposes all of the bills, saying supply management would limit the U.S. milk supply, harm exports and raise milk prices to consumers.

"Congress should focus on expanding risk-management tools for dairy farmers, not expanding government regulations and government intervention in dairy markets," IDFA President and CEO Connie Tipton said in a written statement.

Dairy Farmers of America disagrees, throwing its support behind NMPF and the Dairy Security Act and endorsing the Refresh Act.

"Refresh contains key dairy policy changes necessary to maintain the vitality of the U.S. dairy industry, including options that allow producers to protect their margins and the ability to strengthen exports," DFA Senior Vice President John Wilson said in a press release.