IDFA Policy Priorities for the 2018 Farm Bill
Enable New Risk Management Opportunities for Fluid Milk: The 2018 farm bill should include provisions that would improve price risk management tools for all Class I Fluid Milk market participants, which includes processors, cooperatives, and dairy producers. Changing the Class I mover from the “higher of” Class III or Class IV to the simple average of Class III and IV plus a $0.74 per cwt. adjustor would allow market participants to use Class III and Class IV futures contracts to hedge their Class I price risk. Making this change will also provide other tangible benefits to the entire supply chain and could help reverse the declining per capita consumption of beverage milk products. The current authorization for forward contracting for classes II, III, & IV also needs to be extended.
Improve the Margin Protection Program: As part of the 2018 farm bill, farmers hope to improve the Margin Protection Program, a dairy farmer safety net. Dairy processors support improvements to the dairy farmer safety net in order to provide greater access to effective, non-market distorting risk management tools for producers.
Establish a SNAP Purchase Incentive Program for Dairy Products: The Supplemental Nutrition Assistance Program (SNAP) should include incentives for the purchase of dairy products. This policy would encourage more Americans to consume the three servings of dairy a day recommended by the U.S. Dietary Guidelines. These incentives could be structured similarly to the Food Insecurity Nutrition Incentives (FINI) program or the Healthy Incentives Pilot (HIP) program, both of which have shown that healthy food purchases can be successfully incentivized in SNAP.
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