Farm Bill: Dairy
DTN Political Correspondent Jerry Hagstrom reported yesterday that, “While a key element in the dairy reform bill announced last week would be voluntary, the Congressional Budget Office has estimated that producers of at least 60% of the nation’s milk would sign up for it, National Milk Producers Federation President Jerry Kozak said Monday.
“A bill introduced Friday creates a new subsidized margin insurance that covers 80% of a milk farmer’s production history. A market stabilization program also would reduce milk production during times of low margins. If dairy producers wish to elect to sign up for the subsidized margin insurance program, they will automatically be enrolled in the stabilization program.
“The draft written by House Agriculture Committee ranking member Collin Peterson, D-Minn., initially made participation in a dairy market stabilization program mandatory, but after some dairy farmers told National Milk officials during a series of meetings this summer that they did not want to participate, the federation made the participation optional.”