Dairy Today has obtained the full scope of USDA’s Dairy Industry Advisory Committees recommendations and vote tallies, which were to be posted later this afternoon on the DIAC website. The votes were taken at last week’s meeting. There are 17 members of the committee, all of whom were appointed by Secretary of Agriculture Tom Vilsack.
Of the 22 recommendations proposed, 18 passed, two failed and two were tabled. Sixteen of the 18 recommendations that passed garnered at least two-thirds “yes” votes. In fact, 8 of the 18 were passed unanimously.
Two recommendations passed on split vote: Recommendation XII: Adopt California milk solids standards for fluid milk: 9 yes, 7 no, 1 abstention. Recommendation XVIIII: Adopt a growth management (supply control) program: 9 yes, 8 no.
The DIAC has met on five different occasions since last April, for two-day and one thee-day meetings. Because some of the appointed members had little or no detailed experience with U.S. dairy policy and regulation, much of the committee’s early work involved education.
DIAC will meet again in mid-January to vote on the final report, which will then be published in late January. The hope is that the report will be a guide map for Sec. Vilsack and USDA as they explore reforms to dairy policy.
Those recommendations that passed with strong majorities included:
• Maintain and expand programs for export market development.
• Simplify and improve risk management products for dairy farmers.
• Establish risk management lines of credit for first buyers of milk.
• Adoption of maximum somatic cell count limits of 400,000 within the next four years.
• Adopt tax-deferred farm savings accounts.
• Review Federal Milk Market Orders for volatility, inefficiency and dairy farm profitability and recommend reforms.
• Strongly consider end-product pricing.
• USDA support of dairy descriptors for milk, cheese, yogurt, butter.
• Provide incentives for environmental practices.
• Phase out ethanol subsidies such as the blender’s credit and tariffs on imported ethanol.
• Explore elimination of dairy price supports and the dairy export incentive program and use budget savings to enhance other dairy safety net programs.
• Continue EQIP and grant programs
• Support programs that enhance value-added dairy market development.
• Collect and publish data on alternative measures of a competitive pay price.
• Modify the Milk Income Loss Contract (MILC) Program to include an all-milk income/feed cost margin trigger and provide an insurance program for larger producers who exceed the MILC production cap.
• Develop a system that provides an accurate assessment of dairy profitability.
The two recommendations that failed involved USDA promotion of competitive behavior of market participation and the exploration of a two-class milk pricing within the Federal Milk Marketing Order system.
The tabled recommendations would have required that real milk solids be used if fluid milk is fortified, and detailed requirements for a margin insurance program for dairy producers.
