#Dairy Freedom Act is bad farm policy

The comprehensive farm and food bill that is being taken up by Congress — after a year of absurd delays that illustrate the absolute dysfunction of the House — is an imperfect measure. But it can be made better or worse with amendments.
One amendment that would make it dramatically worse is the so-called Dairy Freedom Act, which has unfortunately gained some traction in the House.
The act, which is being promoted as a possible amendment to the bill, would undermine market stabilization provisions that protect dairy farmers from the risk of chronic overproduction of milk.
“Removing the market stabilization component of the dairy reform package will exacerbate wild swings in market prices and lead to chronic oversupply,” says Wisconsin Farmers Union President Darin Von Ruden. “This would be devastating not only for milk prices but also for the farmers who produce milk.”
The Farmers Union notes a recent study by University of Missouri agricultural economist Scott Brown suggests that the Dairy Freedom Act scheme would cost taxpayers more while warping markets. That’s not good for farmers OR consumers.
Steve Etka, who serves as coordinator for the Midwest Dairy Coalition, argues that the better approach is outlined in the Dairy Security Act, which that has been embraced by wise members of the Senate and House agriculture committees. “DSA offers an improved safety net for dairy producers, insulating the nation’s rural economy at critical times when farmers face particularly challenging situations that make it difficult for them to cash-flow their businesses,” he explains.
“Farmers will be able to guard against catastrophically low margins, like those experienced in 2009 and again in 2012,” adds Elka. “Meanwhile, consumers will benefit from a market stabilization component of the DSA program that will help to moderate volatile milk prices through better market balance.”
That’s a sound analysis, and it explains why the Wisconsin Farmers Union is urging members of the state’s congressional delegation to dismiss the Dairy Freedom Act as the poor idea that it is.
“Farmers want to get a decent price from the market, not from the mailbox,” says the WFU’s Von Ruden. “If farm incomes are approximately the same but market prices are much lower under DFA, then the difference is being made up by taxpayers. Let’s have honest markets, and let consumers pay for milk at the grocery store, not through higher federal taxes.”
He’s right. The Dairy Freedom Act is bad farm policy.
Source: WSJ