Milk Producers Federation Endorses Dairy Policy Farm Bill Package

News Date March 12, 2007

The National Milk Producers Federation (NMPF) Board of Directors endorsed last week a comprehensive dairy policy package for the 2007 farm bill. The proposal calls for significant improvements in current federal farm programs, while also featuring some new elements. "After a year of discussion and deliberation, I am pleased that our members have come together to support dairy farms of all sizes in all regions of the country, building on the policies that work now, while considering new paths as well," said Jerry Kozak, NMPF president and CEO.
 
The proposal calls for changes in the present milk price support program in order to make it more predictable and effective. For the first time, NMPF also is endorsing a milk producer security program that would provide payments directly to dairy farmers. The plan also includes new or expanded programs to address energy, environment, conservation, animal health, nutrition, trade, risk management, and other important issues. The proposal's change in the milk price support program would shift it from a program that supports the price of milk, to one that explicitly supports the price of specific dairy products that USDA would purchase at established prices. Such a change would provide a firmer safety net under farm-level prices, while making the program easier to administer, Kozak said.
 
The proposed milk producer security program is designed to provide income protection and consistency to producers, who have been whipsawed recently by rising volatility in farm production costs--from more expensive fuels, to record-high animal feedstock prices. 

 In addition, the proposed initiatives encourage increased use of on-farm methane digesters and other technologies that can produce renewable energy and improve soil, air and water quality. NMPF also supports increased funding for USDA's Market Excess Program (MAP) and the Foreign Market Developments (FMD) program, the reauthorization of the Dairy Export Incentive Program (DEEP), and the final implementation of the dairy promotion checkoff to imported dairy products--a provision passed by Congress in the 2002 farm bill that was never put in place. The full text of the news release can be located at http: //www.nmpf.org/. (Contact: Jennifer Yezak)