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Low milk prices sound nice to consumers, until the family-owned farms, which produce the milk, cannot stay afloat, forcing consumers to buy low-quality milk imported from foreign markets.
That is just one scenario consumers could face if legislators do not act quickly on getting some relief to dairy farmers and their families.
“For years, local dairy farm families have been suffering, and it’s are not getting any better,” county commissioner Brian Smith said.
Smith has been an advocate for dairy farmers in the region for many years. Smith was a dairy farmer until April when his love of dairy farming started to cost him.
Smith said he was forced to sell his cows as a direct result of the prices.
Many dairy farmers are in the same situation. Part of it has to do with how the pricing is determined using the Chicago Mercantile Exchange, which Smith said is “not working for the farmers at all.”
“There is reporting which isn’t done that should be done,” he said.
Smith said the futures pricing on the milk does not show much movement toward better pricing for the farmers.
Policymakers gave dairy farmers the option to enter forward price contracts in the 2008 Farm Bill, but that does not help when the price discovery for dairy commodities is questionable.
“They want farmers to use forward pricing on their milk, but it is horrible...no one would buy into it,” Smith said.
“The U.S. Dairy Industry would benefit from a reliable and transparent method of price discovery for dairy commodities,” stated a letter from the PA Department of Agriculture (PDA), the Center of Dairy Excellence (CDE) and the PA Dairy Task Force (PADTF). The group of organizations encourage supporters of dairy farmers to use the letter as a template to urge their elected officials get moving and help the dairy families.
Most legislators are waiting around until the next Farm Bill in 2012, but that it too long, Smith said.
“The urgency of this problem needs to be addressed a lot quicker than 2012,” Smith said.
“Legislators are just sitting by and watching the farmers starve to death,” he said.
A Farm Bill is a omnibus bill, renewed every 4-5 years by Congress, which provides an opportunity for policymakers to address agricultural and food issues, such as federal farm support, food assistance, agricultural trade, marketing and rural development.
“The bill can create a broader coalition among sometimes conflicting interests...but can stir fierce competition for available funds,” said Renee Johnson, specialist in agricultural policy with Resources, Science and Industry Division in Congress.
Low milk prices sound nice to consumers, until the family-owned farms, which produce the milk, cannot stay afloat, forcing consumers to buy low-quality milk imported from foreign markets.
That is just one scenario consumers could face if legislators do not act quickly on getting some relief to dairy farmers and their families.
“For years, local dairy farm families have been suffering, and it’s are not getting any better,” county commissioner Brian Smith said.
Smith has been an advocate for dairy farmers in the region for many years. Smith was a dairy farmer until April when his love of dairy farming started to cost him.
Smith said he was forced to sell his cows as a direct result of the prices.
Many dairy farmers are in the same situation. Part of it has to do with how the pricing is determined using the Chicago Mercantile Exchange, which Smith said is “not working for the farmers at all.”
“There is reporting which isn’t done that should be done,” he said.
Smith said the futures pricing on the milk does not show much movement toward better pricing for the farmers.
Policymakers gave dairy farmers the option to enter forward price contracts in the 2008 Farm Bill, but that does not help when the price discovery for dairy commodities is questionable.
“They want farmers to use forward pricing on their milk, but it is horrible...no one would buy into it,” Smith said.
“The U.S. Dairy Industry would benefit from a reliable and transparent method of price discovery for dairy commodities,” stated a letter from the PA Department of Agriculture (PDA), the Center of Dairy Excellence (CDE) and the PA Dairy Task Force (PADTF). The group of organizations encourage supporters of dairy farmers to use the letter as a template to urge their elected officials get moving and help the dairy families.
Most legislators are waiting around until the next Farm Bill in 2012, but that it too long, Smith said.
“The urgency of this problem needs to be addressed a lot quicker than 2012,” Smith said.
“Legislators are just sitting by and watching the farmers starve to death,” he said.
A Farm Bill is a omnibus bill, renewed every 4-5 years by Congress, which provides an opportunity for policymakers to address agricultural and food issues, such as federal farm support, food assistance, agricultural trade, marketing and rural development.
“The bill can create a broader coalition among sometimes conflicting interests...but can stir fierce competition for available funds,” said Renee Johnson, specialist in agricultural policy with Resources, Science and Industry Division in Congress.
Suggestions
The letter from the PDA also calls for an extension of the Milk Income Lost Contract (MILC) program. The program, which Smith called “useless,” provides monthly payments which are determined and issued to eligible dairy operations when prices fall below a feed-cost-adjusted trigger.
“MILC doesn’t give the farmers what they need,” Smith said. “It’s like pulling a parachute cord after you hit the ground.”
Another suggestion from the PDA is an overhaul of the Federal Order System to study the economic benefits to the producer of establishing two classes of milk, with prices for each class being determined using fat, protein, and other dairy solids.
The PDA also suggests the development of new markets to encourage industry investments. “The U.S. is in a good position to become a significant player in the global export markets for dairy ingredients and for this opportunity to continue to grow,” the letter states.
The PDA also asks for greater oversight on trade agreements which determine the impact on the domestic dairy industry.
