At the National Dairy Producers Conference this week organized by the National Milk Producers Federation, panelists discussed the expected negotiations of a 2013 Farm Bill and potential inclusion of the Dairy Security Act.
NMPF has been a supporter of the DSA, which eliminates the dairy product price support program and enacts a voluntary program that pays based on the margin between farm milk prices and the national average cost of feed.
The DSA also includes a market stabilization component, which requires producers to reduce the amount of milk they market or produce at the same level but take a milk check deduction, if margins reach "catastrophic levels."
Though the market stabilization component is only applicable to farmers participating in the voluntary margin program, it has become a point of contention for DSA opponents, such as the International Dairy Foods Association.
IDFA, which represents milk processors, fears the DSA would hurt milk exports and limit U.S. trade surpluses. They also note that domestic prices would be higher.
The group supported an amendment put forth during last year's farm bill debates by Rep. Bob Goodlatte, R-Va., and David Scott, D-Ga., which would have retained a similar dairy market stabilization component, but removed supply management. The amendment, however, was defeated by a vote of 29-17.