Dairy Business Association: Risk management without supply controls (alternative to Dairy Security Act)
Contact: Laurie Fischer
Green Bay, Wisconsin --- Today, the Dairy Business Association (DBA) announced their support for an alternative dairy policy offered by Senator Michael Bennet (D-CO) (Amendment #5) that will protect all dairy farmers and our nation's ability to be the consistent supplier of dairy products for the world marketplace.
DBA supports a new solution-offered in an amendment to the proposed Farm Bill--that will provide catastrophic and supplemental production margin protection for farmers and doesn't rely on a supply management program to fund it. This alternative will simplify and expand management tools for dairy farmers resulting in a reduction in milk price volatility in dairy markets, and without limiting the growth of the dairy industry.
This alternative program is funded by nominal premiums on lower coverage levels. Unlike the Dairy Security Act which deducts dollars from farmer's pockets to pay for participation in the program, a farmer is permitted to select any amount of milk production up to 80% of his or her historic milk production to cover margin levels in 50 cent increments from $4.00/cwt to $6.00/cwt. Under the alternative proposal administrative costs are significantly less.
This new solution will not interfere with dairy markets, but will provide all farmers new risk management tools which they can use to protect themselves during times of market volatility.
The Wisconsin Dairy Business Association applauds Senator Bennet for being a voice of reason at a time when our country and our industry really needs one.
The Dairy Business Association is an industry organization comprised of dairy producers, corporate and allied industry supporters. DBA promotes the growth and success of all dairy farms in Wisconsin by fostering a positive business and political environment. For more information about DBA, please visit our website at http://www.widba.com.