Congressmen Bob Goodlatte of Virginia and David Scott of Georgia attempted to pull the market stabilization provision from the Dairy Security Act in the House farm bill on Wednesday. The representatives said the supply management plan would discourage investment in the dairy industry, hurt the export market and increase consumer prices. The Congressmen noted the plan is opposed by processors, some producers and others in the dairy industry. House Ag Committee Chair Frank Lucas countered that dairy has rarely been united on anything.
The DSA was introduced by ranking member Collin Peterson of Minnesota who says when the industry was going through a disastrous 2009 the CWT program stepped up to move the excess milk and soften the blow…but it was paid for by 70 percent of the producers, the other 30 percent “got a free ride.”