Farm Economy
Rep. Jim Costa (D-Calif.) introduced the Dairy Price Stabilization Act to Congress. Under the program, dairies can choose to maintain current production (plus an allowable year-over-year growth rate based on market conditions) or expand. If they expand, they would pay a fee during the first year of expansion which would be shared with farmers not expanding.
Economists from the Universities of Missouri and Wisconsin have prepared a Dairy Policy Brief on mandatory supply control as one of 11 different briefs in anticipation of the 2012 Farm Bill.
Three national, voluntary supply management programs have been instituted in the United States over the past 25 years or so. All have met with some level of success, but none are being viewed as permanent solutions to surplus milk.
The Milk Income Loss Contract (MILC) program, initiated in December 2001, is coming under more scrutiny as Federal budget deficits climb and as dairy herd size continues to grow, making fewer herds eligible for a smaller share of their annual milk production.
Dean Foods Co., the largest U.S. milk processor, faces competition from an unexpected source: its biggest customer.
NAFTA provides unfettered access to Canadian market for U.S. high-protein milk ingredients—at least for now.
Both the National Milk and Holstein Dairy Plan would reduce price volatility.
Members of California’s Milk Producer Council upset with International Dairy Foods Association stance on dairy supply management
USDA reports that May 2010 milk production was up an estimated 1.1% across the country, but cow numbers were down 171,000 compared to a year ago.
Former Virginia dairy farmers gives his opinion on recent USDA/Department of Justice hearing on dairy market consolidation.
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