Search Site   
News Stories at a Glance
Panel explores ways to restore competition in agri-food chain
INFB conference offers ways for farmers to expand operations
Michigan fruit harvests underperform due to weather-related issues
Michigan statewide regenerative soil program enters its third year
State-level wetlands law draws concerns in Illinois
Shelbyville student competes in National High School rodeo
USDA seeking public comment on beef carcass grade update
Agronomy Farm’s inaugural field day showcased soybeans
Clay Target league provides team experience for rural youth
Farm equipment sales down but combine purchases up in June
Corteva consolidates four seed brands under Hoegemeyer label
   
Archive
Search Archive  
   
Dairy analysts want more effective safety net in bill
Chip Kunde of the International Dairy Foods Assoc. said “new ideas are emerging for a more effective dairy safety net” regarding the 2007 farm bill debate.

One of the most comprehensive ideas is from the Pennsylvania Department of Agriculture, according to Kunde. The proposal urges Congress to eliminate the support program, restructure the MILC program, and develop a Milk Revenue Insurance Program to “help farmers create their own revenue protection.”

“This is significant,” Kunde said, “because Pennsylvania is a leading dairy state, ranking fifth in milk production with nearly 14 percent of all U.S. dairy herds.”

Pennsylvania farmers received $213 million in MILC payments through November 2006, ranking them third behind farmers in Wisconsin and New York.

Referred to as the Milk Target Price Program, the plan would make payments to all dairy farmers whenever the Class III milk price falls below a determined target level. Unlike MILC, which pays on only 34 percent of the milk produced by a farmer, the Pennsylvania program would pay on 100 percent of the difference between the target price and a lower market price.

This approach would establish “a better price floor than the price support program,” according to Kunde, and “provide more income security than the MILC payment.” Pennsylvania’s revenue insurance program would provide farmers with income protection against milk revenue losses from natural disasters and price fluctuations. It would enable dairy producers to purchase insurance based upon the five-year adjusted average milk revenue per cow.

“(The program will) help producers reduce downside risks and improve their ability to make long-term business investments wi

3/14/2007