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Bipartisan Coalition Introduces Amendment to Remove Dairy Supply Management from the Farm Bill

Press Release

Location: Washington, DC

Congressman Bob Goodlatte today introduced the Goodlatte/D. Scott/C. Collins/Moran/Duffy/Polis/Coffman/Meeks/Issa/DeGette/Sessions Amendment to H.R. 1947, the Federal Agriculture Reform and Risk Management (FARRM) Act of 2013. The Goodlatte/D. Scott/C. Collins/Moran/Duffy/Polis/Coffman/Meeks/Issa/DeGette/Sessions Amendment strikes the Dairy Market Stabilization Program (DMSP) that is included in the base text of the FARRM Act and replaces it with a stand-alone margin insurance program for dairy producers.

Congressman Goodlatte's statement is below:

"The bipartisan coalition of Members from across the nation who joined me in introducing this amendment today is a sign of the growing opposition to a dairy supply management program. Our amendment strikes the DMSP that limits supply, controls industry growth, and meddles in the free market. The reforms in the amendment will give farmers the necessary tools to manage their risk without requiring them to participate in yet another government program, keeping dairy prices affordable for consumers and businesses. Furthermore, our amendment, without supply management, would save taxpayers money as certified by CBO. As the Farm Bill heads to the House floor, I look forward to working with this coalition to support this common sense reform for our nation's dairy farmers without forcing the consumer to pick up the bill."

Summary of the Goodlatte/D. Scott/C. Collins/Moran/Duffy/Polis/Coffman/Meeks/Issa/DeGette/Sessions Dairy Amendment

The Amendment would remove Subtitle D PART I--"DAIRY PRODUCER MARGIN PROTECTION AND DAIRY MARKET STABILIZATION PROGRAMS" and replace it with a new "Dairy Producer Margin Insurance Program". The amendment provides dairy producers with the option to annually enroll in a new margin insurance program at levels of $4.00 and up to $8.00 in increments of fifty cents. Based on the highest annual of three previous calendar years of their milk marketings, dairy producers are allowed to elect their coverage level and the percentage of coverage up to 80% at the start of the program and annually thereafter. Dairy producers are also allowed to update their production history annually. The Secretary is required to make payments to dairy producers enrolled in the program whenever the actual dairy producer margin drops below $4.00 (or below a higher level of coverage up to $8.00). The amendment leaves the rest of the underlying dairy title intact, including the removal of the Dairy Product Price Support Program, the MILC Program, and the Dairy Export Assistance Program and the reauthorization of the 1996 FMMO additional order provision.

CBO scores this amendment as saving the taxpayers $15 million.

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