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Iowa Senator Grassley Voices Support for Dairy Forward Contracting Senator Charles Grassley (R-IA) last week asked the chairman and ranking member of the Senate Agriculture Committee to consider including permanent authority for dairy forward contracting in the 2007 Farm Bill. In his letter, Sen. Grassley, who also sits on the committee, noted that "since the expiration of the [dairy forward contracting pilot] program, dairy farmers can lock in feed and other input costs through forward contracts, but cannot manage price volatility through the risk management tool of forward contracting with proprietary companies.""We are fortunate to have Senator Grassley's support for dairy forward contracting," said Kristin Wilcox, IDFA vice president for political and legislative affairs. "Dairy producers and processors in Iowa can count themselves lucky to have such a powerful advocate for their interests." The topic received additional discussion when Sen. Grassley mentioned forward contracting and its role to help ensure a healthy dairy industry in Iowa during a radio show last week. Recently, as part of an IDFA's Grassroots Action Network for Dairy (GRAND) outreach effort, Gary Wells, CEO of Wells' Dairy, Inc., based in LeMars, Iowa, wrote Senator Grassley and other members of the Iowa delegation highlighting issues important to his company in the 2007 Farm Bill. In the letter, he asked for their support to make risk management tools, like dairy forward contracting, available to all milk buyers and sellers, and the need for a streamlined Federal Milk Marketing Order process. "With the 2007 Farm Bill right around the corner, we encourage all members to reach out to their congressional leaders and express on a personal level what is important to their businesses today," said Wilcox. IDFA commends Well's Dairy, Inc. for its grassroots efforts and helping to focus their congressional delegation's attention on two priority issues for the dairy processing industry in the farm bill. Through its GRAND program, IDFA can help members make similar connections and have an impact on policy through communication with legislators and plant tours. For more information, contact Ashley Ruch, IDFA manager of political programs, at aruch@idfa.org or 202-3534.
Posted February 5, 2007
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