The Dairy Business Association (DBA) continues their work to oppose the supply management provision called the Dairy Market Stabilization Program (DMSP) outlined in the Dairy Security Act which may be part of the farm bill scheduled to be taken up by the House Committee on Agriculture this month.
The DBA was pleased to learn of the bipartisan efforts from numerous members of the Wisconsin Congressional delegation who sent a Letter to the House Committee on Agriculture Chairman Frank Lucas and Ranking Member Collin Peterson this week opposing the DMSP.
DBA's Executive Director Laurie Fischer stated, "We very much appreciate and support the recent efforts of members of the Wisconsin delegation to oppose the DMSP. The DBA opposes the supply management provisions because they would reduce farmers' milk checks periodically and unpredictably, which would require farmers to either discard a portion of their milk production in excess of their base or not get paid for the portion of their milk delivered larger than their base. Penalizing milk production in certain states to manage over production in others is an unfair and inappropriate approach. We believe margin insurance on its own represents the best policy to manage our milk production and markets today and in the future."
In a joint press release, Congressman Sensenbrenner stated, "While I support better risk management tools to hedge against losses in the dairy industry, market stabilization could negatively impact Wisconsin's ability to export milk due to the threat of an inconsistent supply. DMSP would create additional government intrusion - keeping prices artificially high, wasting government funds and stifling job growth. We should not deter dairy farmers from producing additional milk in order to manage over-production in other areas. It is important to ensure the Agriculture Committee is aware of dairy's importance to Wisconsin and our milk producers are not unintentionally hurt by a bill intended to help American farmers."
Congressman Duffy stated, "I have always supported passing a long term farm bill in order to give farmers the certainty they need for planning and making business decisions. Additionally, the Wisconsin dairy industry has seen tremendous growth in recent years driven primarily from exports. The controversial supply management program included in last year's farm bill would threaten that growth and Wisconsin jobs. Removing this provision will make it easier to get a farm bill passed as soon as possible, giving Wisconsin's dairy industry the best opportunity to flourish in the future."
Ms. Fisher stated, "We look forward to working on this important issue with DBA members and our congressional delegation in the weeks and months ahead."