California dairy producers were among those testifying at the House Agriculture Committee farm bill hearing in Fresno on Monday. Western United Dairymen president Jamie Bledsoe told the Committee while butter and nonfat dry milk prices are moving up, the rest of the dairy industry remains unprofitable due mainly to those huge cheese inventories. “Though prices are expected to increase as we move through the second half of 2010, a return to breakeven simply will not undo the damage done to dairy farmers over the past 18 months. Producers will continue to go out of business as it becomes clear that equity is gone and lenders are reevaluating operating loans with a new set of rules they must live by. Farmers must have access to adequate operating capital to continue to weather this storm.” Bledsoe also told the representatives the Milk Income Loss Contract (MILC) program was not working because it is capped to favor smaller producers.
Immigration policy also came up at the hearing, nursery owner Jon Reelhorn stated the downturn in the economy has not prompted native-born Americans to seek jobs on farms so he and people in his industry still need immigrant labor. One citrus grower told the Committee current law has made him a criminal because he knows he cannot maintain a legal workforce.
The 160 people in attendance at the hearing represented the diversity of California agriculture and the unique challenges that presents. Rice producers expressed their concern with the fact the current safety net does not cover them. House Ag Committee Chair, Collin Peterson says he is committed to designing a simpler crop insurance system that covers all producers. “A way to make these coverages effective, it’s not going to be pretty but it’s going to be another risk management tool that people have available and I think we should have it.”
The group was in Cheyenne, Wyoming for another hearing on Tuesday. Preliminary reports say about 100 people were in attendance.
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