Crucial Dairy Policy Reforms Welcomed in Farm Bill

US - The dairy policy reforms that have been under development for three years were included in the 2012 Farm Bill approved by the Senate last Thursday by a vote of 64-35.

25 June 2012

2 minute read

North America

The National Milk Producers Federation hailed the bill’s passage as a “huge and historic step toward making a once-in-a-generation improvement in the safety net for America’s dairy farmers,” according to Jerry Kozak, President and CEO of National Milk Producers Federation (NMPF).

“Despite a variety of political, economic and institutional challenges, the leaders of the Senate, and in particular, the leaders of the Senate Agriculture Committee, Senators Stabenow and Roberts, have delivered on their promise to produce better farm and food policy. We appreciate their hard work in the past months, and will work in turn to ensure the House produces a similar bill in the coming months,” Mr Kozak said.

Mr Kozak said the dairy title contains a better safety net for farmers in the form of the Dairy Production Margin Protection Programme, which offers them a basic level of coverage against low margins, as well as a supplemental insurance plan offering higher levels of protection jointly funded by the government and participating farmers. Those farmers choosing to enroll in the margin programme will also be subject to a Market Stabilization Programme that addresses the imbalance between supply and demand when farm-level margins are poor.

During the consideration of more than 70 amendments to the bill, there was no effort to significantly alter the dairy title, NMPF said.

“Although it was necessary to work to defeat several unacceptable amendments, the fundamental package of dairy policy reforms supported by NMPF remained unchanged throughout the Senate debate,” said Mr Kozak. “We are very pleased at the progress made during this vital step in the Farm Bill process, but we also know that much work lies ahead,” he added.

With Senate passage of a 2012 Farm Bill, the focus now shifts to the House of Representatives, where the House Agriculture Committee is expected to begin marking up its own version July 11th.