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Dairy Facts 2016

Senate Farm Bill to Include Supply Control Proposal

Apr 20, 2012

The Senate Committee on Agriculture, Nutrition and Forestry has now released the text of the Farm Bill legislation that it will consider next week. The text will be the starting point for committee deliberation. As expected, the bill relies upon a new milk supply management program in order to reduce the costs of its dairy proposals. The Senate proposal is similar to the Dairy Market Stabilization program in the Dairy Security Act, as proposed by Rep. Collin Peterson (D-MN). Although this program is being sold to Congress as a way for the government to control milk price volatility, IDFA believes it will hamstring a growing dairy export business, discourage investment into processing facilities and ultimately hurt new or expanding dairy farms by limiting increased demand for more milk production.

Programs Controlling Markets Have Failed

Programs to assist farmers by controlling markets have failed in several commodity sectors, including dairy, over decades in American agriculture history. IDFA continues to ask Congress to adopt safety-net proposals like margin insurance or the Livestock Gross Margin – Dairy program that do not attempt to assist producers by imposing government control of the supply and demand for milk and will not have the negative consequences of supply-management programs.

On Monday, Agriculture Secretary Tom Vilsack said he “expects the full Senate to vote on the [Farm] bill in late spring or early summer. And it’s possible to have legislation approved by Congress before the current law expires in September.”

"With the Senate mark-up around the corner and the significant threat of new milk production controls in the Chairwoman’s mark, IDFA strongly urges all members to contact their senators, both on and off the Senate Agriculture Committee, and ask them to oppose any milk supply management program proposed in the 2012 Farm Bill," said Connie Tipton, IDFA president and CEO. "It is crucial that senators on both sides of the aisle hear that you oppose additional government regulations and this direct government intrusion in dairy markets."

House Ag Committee to Hold Hearing on Dairy

The House Agriculture Committee has announced that it will hold several Farm Bill hearings in Washington, starting with one covering dairy issues next week. The committee is working with IDFA to assure that the views of processors are represented, and Jon Davis, CEO of Davisco Foods International, Inc., will testify on behalf of IDFA. Davis is IDFA secretary and chair of the National Cheese Institute. 

House Agriculture Committee Chairman Frank Lucas (R-OK) anticipates that his committee will mark up its version of the Farm Bill later this spring or early summer.

For more information, contact:

  • Jerry Slominski, IDFA senior vice president of legislative affairs and economic policy,
  • Ruth Saunders, IDFA vice president of policy and legislative affairs,
  • Chelsee Woodey, IDFA director of legislative affairs,
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