The debate over federal dairy policy, and the Dairy Security Act in the proposed U.S. farm bill legislation, is far from over. While the act makes several positive advances, including the elimination of antiquated dairy programs, the creation of margin insurance with a poison pill known as "supply management" is a step in the wrong direction.
With anticipated growth in Wisconsin's dairy industry, adopting a federal policy that curtails milk production is counter intuitive. Wisconsin's dairy industry and its related businesses are top economic drivers of our economy, bringing in $26.5 billion in revenue annually.
Under the proposed Dairy Security Act, farmers participating in the risk management or margin insurance portion of the program must participate in the supply management program. Wisconsin farmers will be mandated to limit their milk production, reducing revenues and de-stabilizing our state's consistent milk supply. This program also places the USDA and the federal government directly between processors and producers, an even more problematic issue.
To read the rest of the story, please go to: Dairy Business Association of Wisconsin