Congress urges implementation of dairy farm bill support
Members of Congress urge USDA to actively engage with farmers about new changes to Dairy Margin Coverage program.
Members on both sides of the aisle in the House and Senate are asking the U.S. Department of Agriculture to speed up its implementation of the new dairy program enacted under the 2018 farm bill.
In a letter to Agriculture Secretary Sonny Perdue, House Agriculture Committee chairman Collin Peterson (D., Minn.), subcommittee on general farm commodities and risk management ranking member Glenn “G.T.” Thompson (R., Pa.) and more than 70 Democrat and Republican House colleagues urged USDA to prioritize the implementation of dairy provisions included in the most recent farm bill.
In the Senate, in an effort led by Senate Agriculture Committee ranking member Debbie Stabenow (D., Mich.) and Sen. Roy Blunt (R., Mo.), a bipartisan group of 38 senators urged quick action to offer relief to the nation’s dairy farmers.
As dairy farmers across the country continue to struggle with market instability, the 2018 farm bill dramatically expands support for dairy producers, providing flexible, affordable coverage options through the Dairy Margin Coverage program. Early analysis has shown that the improvements would provide much-needed financial support to dairy farmers, offering significant benefits for all operations and up to five times as much support for the smallest farms.
“Last year, the average dairy farm in Minnesota earned $15,000 — a third of what it earned in 2017. Given what’s facing dairy farmers, USDA needs to get a move on implementing these dairy programs as soon as possible,” Peterson said.
“The 2018 farm bill provides dairy farmers with better risk management tools, improved coverage and more affordable options,” Thompson added. “USDA should fast-track these changes, as times remain difficult, and producers around the nation need more options.”
“The situation for dairy farmers is urgent,” the senators wrote. “Although Dairy Margin Coverage is effective as of Jan. 1, 2019, the government shutdown delayed action on 2018 farm bill implementation for over a month. During this time, dairy farmers have continued to face market instability and are struggling to survive the fourth year of sustained low prices. In the interim, we request that the USDA invest in outreach, training, coordination with partner organizations and staffing to ensure that every eligible farmer receives personalized information about the new and improved options.”
The letters, signed by 77 members of the House and 38 senators from both parties, urged active USDA engagement with farmers on multiple levels, including mailings, phone calls and local meetings as well as collaboration with stakeholders, including state officials, cooperatives, producer groups and institutions of higher education.
Peterson said he hopes “USDA will over-communicate on what the new programs can do for farmers. Congress worked hard to include higher and more affordable coverage options, so it’s important that there is outreach so that these folks see just what the new programs can do for them.”
Jim Mulhern, president and chief executive officer of the National Milk Producers Federation (NMPF), welcomed the request from the legislators. “Implementing dairy programs in a fast and farmer-friendly manner is important to NMPF members. We applaud Secretary Perdue for his efforts to commit to a timeline that gives farmers some certainty for financial planning. We need to ensure that outreach is broad and that farm-specific issues that arise during implementation are addressed with flexibility.”
The 2018 farm bill also made several other important changes to address the needs of dairy producers, including: a study on the feed components of the margin calculation, a provision to counteract the disincentive for milk donation, continuation of forward contracting, an update to the Class I pricing formula and a partial refund or credits from premiums paid under the former Margin Protection Program.
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