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"In his testimony, Governor Johanns showed a willingness to tackle tough issues facing the U.S. food and agriculture community. We welcome his comments about courageously looking to the future and being open to fresh ideas -- that's just the approach we need on dairy policy as we head into the Farm Bill reauthorization in 2007," said IDFA Senior Vice President Chip Kunde. "At the same time, Governor Johanns made it clear that the nation's serious fiscal realities will be an influential factor in his decisions at USDA." During the hearing, two Democratic committee members opined on the need to consider an extension for the costly Milk Income Loss Contract (MILC) payment program and a resurrection of the failed dairy compact experiment. The new agriculture secretary will likely encounter these issues, as well as efforts to impose additional taxes on dairy imports and create more subsidy programs. Kunde stated that "such attempts will face serious opposition due to the government's budget constraints that the governor acknowledged during his testimony. In fact, the MILC extension alone would cost nearly $2 billion, and this is a program that doesn't even have the support of the entire dairy producer community. "Much is at stake as we move forward, and IDFA will be very active in communicating the need for a more effective, comprehensive dairy policy. USDA's own recent report on dairy noted that many policies are actually at odds with each other, and this hurts dairy farmers, processors and consumers. We're optimistic about the prospects for meaningful reform as part of the new Farm Bill process." IDFA also notes that the new agriculture secretary will play a pivotal role in promoting free trade, a position well-suited for Governor Johanns. During his term as governor, he has led several overseas trade missions to promote products from Nebraska. "We applaud President Bush for selecting such an experienced leader for USDA during an important period for agriculture trade liberalization," said Kunde. "IDFA is a strong supporter of the Bush Administration's aggressive course of action on free trade. We call on Congress to quickly approve trade agreements that cover all commodities, including the U.S.-Central American Free Trade Agreement. In addition, lawmakers should reject efforts to impose additional tariffs on dairy protein imports, as well as other impediments to free trade." The full Senate has not yet voted to confirm Governor Johanns as agriculture secretary, but the chamber is expected to approve the nomination by January 20, the day that President Bush is sworn into office for his second term. If confirmed, the governor would become the nation's 28th agriculture secretary.
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IDFA is the Washington, DC based organization representing the nation's dairy processing and manufacturing industries and their suppliers. IDFA is composed of three constituent organizations: Milk Industry Foundation (MIF), National Cheese Institute (NCI) and International Ice Cream Association (IICA). Its 500 plus members range from large multinational corporations to single plant operations, and represent more than 85% of the total volume of milk, cultured products, cheese, and ice cream and frozen desserts produced and marketed in the United States an estimated $70 billion a year industry. IDFA can be found online at www.idfa.org.
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