"The industry needs to move on legislation that will provide support to dairy farmers," said Tipton. "Margin insurance, and other proposals where processors and producers agree, should be part of that plan. Programs to limit milk supply or impose penalties on producers should not even be on the table in our industry discussion."
Response by the National Milk Producers Federation
NMPF President and CEO Jerry Kozak issued a statement in response to the Informa Economics study sponsored by IDFA.
“Dairy farmers in every state saw their collective milk income drop more than ten billion dollars in 2009, which doesn't even include billions more in lost equity. This catastrophe was the result of current dairy policy that doesn't offer farmers of any size, in any state, the protections they need against catastrophic financial losses. NMPF’s Foundation for the Future has been carefully designed to offer protection for their hard-earned equity."
“While providing all farmers in all regions a better safety net, Foundation for the Future also discourages periodic marketplace imbalances that generate enormous volatility, hurting all dairy producers.”
Kozak's response was made while attending the International Dairy Foods Association 2011 Dairy Forum in Miami.
IDFA-Sponsored Informa Economics Study
The full report is available on the IDFA website and at www.KeepDairyStrong.com, a new effort by IDFA to provide information about government-run milk supply-control programs that would set limits on how much milk a dairy can produce and impose penalties on dairies that produce too much milk.
Estimated Withholdings according to the Informa Econoics Study:
Wisconsin $150.0 Million
New York $63.5 Million
Minnesota $51.3 Million
Michigan $36.8 Million
Idaho $34.6 Million
Pennsylvania $33.5 Million
Texas $33.3 Million
New Mexico $30.7 Million
California $28.2 Million
Washington $25.0 Million
Ohio $23.0 Million
Iowa $16.1 Million
Indiana $15.3 Million
Oregon $13.8 Million
Colorado $13.7 Million
South Dakota $11.7 Million
Arizona $10.8 Million