Farm Bill Is Causing Controversy In The Land Of Milk And Honey

By Sam Lewis

Top U.S. dairy manufacturers urge Senate to accept new legislature

Letters regarding the 2013 Farm Bill are pouring in to the U.S. Senate from 28 dairy companies, including some of the United States’ largest. The companies, including Borden Dairy, Dairy Queen, Dannon, Dean Foods, Kraft, Kroger, and Nestle, are members of the International Dairy Foods Association (IDFA). The group is actively leading opposition against government mandates on dairy production limits.

The letters are demanding the Senate to accept the bill, which already passed in the House of Representatives, but amended to not include a controversial new program. Dairy farmers oppose the inclusion of the program as it would periodically limit the amount of milk a farm can sell. “The House-passed bill allows dairy companies, particularly dairy exporters, to continue to grow and create jobs,” says IDFA SVP of legislative and economic affairs Jerry Slominski. “It provides an effective new safety net to help dairy farmers through difficult times without reducing the effectiveness of our government's nutritional safety net.”

The program is called the Dairy Market Stabilization Program, and was included in the Farm Bill which passed through the Senate in June. However, in July, the House gave the program a “nay” with a 291-135 vote. What happens next is astonishing. There was a brief glimpse of bipartisanship when 95 Democrats were added to the 196 Republicans that support establishing a new revenue insurance program for dairy farmers, but eliminates the stabilization program. “The Senate bill would require dairy farmers who enroll in a margin insurance program to periodically limit the amount of milk their farms can sell,” reads the letter. 

The bill would give power to the USDA to regulate the dairy business. It would also require dairy manufacturers to give portions of payments —normally given to dairy farmers who supply milk to plants — to the USDA. Essentially, the program would be taking money out of rural farmers’ pockets, many of which are already struggling. “We believe this convoluted system is the wrong approach,” say the manufacturers. “Dairy farmers who take advantage of the margin insurance should not be required to participate in a program that would have the government directly interfere in the milk supply. Limiting the milk supply will discourage further investment and growth in our industry and will impose additional and unnecessary regulations on our businesses.”