Wisconsin Ag Connection - MMPA Supports Dairy Security Act in Farm Bill

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MMPA Supports Dairy Security Act in Farm Bill
Wisconsin Ag Connection - 04/24/2012

A member-owned dairy cooperative is the latest group to support efforts to overhaul the way farmers are paid for their milk through the Dairy Security Act. The Michigan Milk Producers Association--which serves patrons in Michigan, Wisconsin and several other states--is applauding the inclusion of the DSA in the draft farm bill language released Friday by the Senate Agriculture Committee.

Committee Chairwoman Senator Debbie Stabenow of Michigan, along with Ranking Member Senator Pat Roberts from Kansas, released the farm bill provisions in preparation for the Agriculture Committee markup. The draft includes key elements of the DSA, which was introduced last fall in the House by Reps. Collin Peterson and Mike Simpson.

"We greatly appreciate the leadership of Senator Stabenow for understanding the need to refocus dairy policy in today's global economy by including the provisions of the Dairy Security Act of 2011 in this legislative draft," said MMPA President Ken Nobis. "The dairy title of the bill is designed to revamp and improve the farm-level safety net for U.S. dairy producers, allow for growth, assure consumers an abundant supply of milk, and save taxpayers' dollars."

The DSA is modeled after the Foundation for the Future policy dairy reforms first proposed by National Milk Producers Federation nearly two years ago.

The core of the DSA is a margin insurance program that protects farmers from dire economic conditions caused by either low milk prices or high feed costs. The margin insurance program replaces existing dairy programs including the Milk Income Loss Contract program and the Dairy Price Support Program. Farmers who choose to sign up for the margin insurance program will then be enrolled in the Market Stabilization program through which they will be asked to manage their milk supply when worst-case conditions appear.

Leaders of the Wisconsin Farm Bureau also support the DSA. But the Dairy Business Association and Wisconsin Cheese Makers Association have come out against the plan.

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