Ag Secretary Sees Dairy as Challenge in Farm Bill

Cindy ZimmermanAudio, farm bill, Government

The Senate Agriculture Committee voted 15-5 today to approve the Agriculture Reform, Food and Jobs Act of 2013, which includes the Dairy Security Act.

Secretary of Agriculture Tom VilsackThe House Agriculture Committee will take up their version of the bill on Wednesday, where an alternative plan to the DSA will be proposed. Agriculture Secretary Tom Vilsack told farm broadcasters meeting in Washington on Tuesday that he expects dairy to be a challenge in the farm bill.

“I think everybody likes the price stabilization piece of it, (but) how do you ensure that it doesn’t break the bank financially,” said Vilsack. “But clearly something’s got to get done in dairy because we’ve had too much volatility and we’ve lost too many of our producers because of it.”

Listen to Vilsack’s comments here: Secretary of Agriculture Vilsack Mtg. with NAFB

A new analysis of the two dairy proposals under consideration in the House Agriculture Committee finds the Dairy Security Act (DSA) would better for farmers and less costly for taxpayers compared to the Goodlatte-Scott alternative.

The new report, prepared by University of Missouri agricultural economists Scott Brown and Daniel Madison, assessed how each option would have affected farm-level economics during the period 2009 through 2012. Under that model they found the DSA would have increased net farm revenues by $0.55 per cwt over the period studied, while the Goodlatte-Scott amendment would have raised farm revenue by only $0.48 per cwt. In addition, the model suggests that the Goodlatte-Scott proposal would have cost $1 billion over the 2009 to 2012 period compared to the DSA, because it would encourage more milk production at lower margins.