The Heritage Foundation, an influential and conservative think tank, published on Monday an open letter that is critical of the Dairy Security Act of 2011, H.R. 3062. It argues that this legislation, which would replace current programs with a new margin insurance program and government supply control and amend the Federal Milk Marketing Order process, would undercut the budget reform effort.
“What has remained unchanged through seven decades of dairy policy are the price distortions that result from the government’s interference,” the letter said. “By limiting supplies to maintain higher prices, consumers pay hundreds of millions of dollars more for milk, butter, cheese and a variety of other dairy products."
"Replacing the existing income and price supports with new ones would supposedly result in a budget savings of $131 million over 10 years, according to the Congressional Budget Office,” the letter added. “But that estimate relies on optimistic rates of program participation and fails to account for the added expense of U.S. Department of Agriculture purchases of commodities for school breakfast and lunch programs and other nutrition assistance. Nor does it reflect the higher retail costs to consumers.”
IDFA continues to oppose any supply-control legislation, because it would hinder U.S. exports, artificially raise prices for consumers and accrue additional costs for government nutrition programs.
For more information, contact Ruth Saunders, IDFA vice president of policy and legislative affairs, at rsaunders@idfa.org or (202) 220-3553.