The draft legislation has been circulated by US representative Collin Peterson, a ranking member of the House Agriculture Committee.
In a statement issued by the IDFA, Tipton said: “We’re disappointed that Rep Collin Peterson is circulating draft legislation that clearly would take the dairy industry in the wrong direction. Instead of encouraging job growth and reducing regulation on an already over-regulated industry, the discussion draft would impose new and intrusive government mandates on dairy markets at the cost of a growing dairy export business and the jobs that have come with it.
“The centrepiece of the discussion draft is a new mandatory programme that will impact every dairy producer and processor in our country. This programme, called the Dairy Market Stabilisation Programme, is designed to limit US milk production by collecting taxes from dairy farmers when farm milk prices are low. Our estimates show that nearly $400m would have been assessed against dairy farmers had this programme been in effect in 2009. According to Rep Peterson’s bill, half of this new dairy farmer assessment will be retained by the federal government to offset other spending or reduce the deficit.
“Because ‘growth management’ government programmes manipulate farm milk prices to be above world market prices, the stabilisation programme will negatively impact the US dairy industry’s ability to compete for new and emerging markets. Dairy exports will be hurt and imports will be encouraged. Studies of the programme have predicted that thousands of US jobs could be lost as a result.
“At a time when the world needs food and is demanding more dairy products, it makes little sense for our government to impose limits on milk production. In addition, higher milk prices will mean that our federal feeding and nutrition programmes will have their limited and stressed budgets stretched even further. The same is true of families with children who are struggling economically. Higher prices for dairy products will encourage substitution of less healthy or nutritious food.
“We appreciate Rep Peterson’s work on this issue and agree that this could be a turning point in changing our dairy policies. However, the problem isn’t too little regulation – it’s too much. The solution isn’t to get government more involved in our markets, but to let our industry grow and produce jobs.”
Source: IDFA
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