The International Dairy Foods Association (IDFA) says if the dairy provisions proposed for the next farm bill were currently in effect it would have been limiting U.S. milk production since May. IDFA CEO Connie Tipton says the heat and drought this summer has already suppressed milk production and the proposed dairy plan would have “dug the hole deeper.” In the end, leading to higher consumer prices.
IDFA senior vice president Jerry Slominski says this is a price example of why the government should not attempt to manage the milk supply; “The weather changes faster than government can change its rules and regulations, and this will cause prices to swing more wildly once the impacts of the drought are felt by the industry.”
National Milk Producers Federation vice president Chris Galen says that yes, the program would have been triggered however not every producer is going to participate and while those that are enrolled would be reducing production; “100% of current milk production may still get to market, it’s just that farmers won’t be paid for all of it if they are enrolled.” As for consumer prices, NMPF president Jerry Kozak points out that as of the end of June, milk production is still on a record pace and while farm milk prices have gone down 18 percent compared to a year ago, “retail prices haven’t changed.”
Read the IDFA statement here:
Read the NMPF statement here: