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DBA Determined to Fight DSA in Farm Bill
Wisconsin Ag Connection - 05/14/2012

One of the most outspoken opponents of the Dairy Security Act says the debate over federal dairy policy is 'far from over.' The Wisconsin-based Dairy Business Association released a memo on Friday after it was learned that the House version of the Farm Bill would likely include the DSA as its solution to reorganizing the way most dairy producers are paid for their milk.

The group cited statements from House Speaker John Boehner, who blasted Minnesota Congressman Collin Peterson earlier this year for proposing what he called 'a convoluted dairy policy.'

DBA also said a group of dairy producers, farm association representatives and processors met with House Ag Committee member Reid Ribble in Appleton at a roundtable discussion of the Senate farm bill this month, in which the entire group reiterated its support for a free-market system.

"The Dairy Security Act, and Supply Management provision contained within it, would result in the unprecedented effect of introducing a new U.S. Government program designed to limit milk production," the DBA said. "This concept is completely contrary to America's free-market system and is a direct government intrusion into dairy farmer's businesses and pocket books. Although deemed voluntary, it must be made clear that it certainly is not. Under the current DSA legislation, farmers who want to participate in the Risk Management portion of the program will be forced to participate in the Supply Management Program."

The group added that Congress tried three different supply management programs in the 1980's--Milk Diversion Program, Dairy Assessment and Dairy Termination Program--and that all of them ended in failure.

"Supply Management is contrary to America's free-market philosophy and will greatly inhibit our potential to grow dairy exports," the letter stated. "Worse still, Supply Management hits America's Dairyland, Wisconsin dairy farmers and cheese makers, even harder as Wisconsin already has to actually import milk from other states in order to meet milk demand of Wisconsin businesses. Federal dairy policy that creates a scenario where America's Dairyland is forced to import milk to meet demand seems absurd, but adopting additional policy that further curtails milk production and restricts the growth and export potential of Wisconsin's Dairy Industry doesn't seem absurd, it simply is absurd."

Last month, the Senate approved its version of the Farm Bill with DSA provisions. The difference between the two measures will need to be negotiated in conference committee.


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