Dairy Farmers Oppose Supply Management

Jamie JohansenAg Group, farm bill, Government

Screen Shot 2014-01-16 at 10.18.08 AMDairy producer groups from across the United States have teamed up to urge Farm Bill conferees to oppose Supply Management. The proposal is known as the Dairy Market Stabilization Program (DMSP).

A letter signed by numerous dairy farmer associations urges conferees to follow the lead of the House of Representatives, which rejected this controversial new dairy program to impose milk quotas on dairy farmers by more than a two to one margin and replace it with language that allows farmers to participate in a margin insurance program without being required to participate in DMSP.

“It simply is not factual when Representative Peterson states that all dairy farmers want the government to control the milk they produce on their farms through the DMSP. Many dairy farmers from all over the country are aligned and opposed to Supply Management,” said Laurie Fischer, Executive Director of the Dairy Business Association.

The letter reads: “As dairy producers and businesses working in the dairy industry, we ask that you support the dairy title as amended in the House version of the Farm Bill, which excludes the Dairy Market Stabilization Program, also known as Supply Management,”

“We believe this convoluted system is the wrong approach,” the dairy groups continue. “Dairy farmers who take advantage of the margin insurance should not be required to participate in a program that would have the government directly interfere in the milk supply. Limiting the milk supply will discourage further investment and hurt our exports.”

The letter concludes, “We ask you to please work with your fellow conferees to ensure that the final Farm Bill does not include the DMSP, but rather provides a safety net for dairy farmers without Supply Management. A strong majority of the House of Representatives believes this is the right approach for dairy policy and the dairy farmers in the United States hope you will join their leadership in seeing this through to the finish line.”

The complete letter can be found here.