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Farm Bill Extends Dairy Programmes to September

04 January 2013

US - Passed in congress on January 1, the impact of the Farm Bill on dairy farming has maintained the industry 'status quo' for the months ahead, receiving mixed reviews from industry figureheads.

The Dairy Export Incentive Programme (DEIP) and forward contracting are extended until September 30, 2013 with the Dairy Product Price Support Programme (DPPSP) is extended through December 31, 2013.

Brought in to avoid the ‘fiscal cliff’ the bill continues the Milk Income Loss Contract (MILC) Programme with payments at the higher 45 per cent level until August 31 and at the 34 percentile a further month until September 30, repeating rates for 2012.

Consumers were worried about the doubling of retain milk prices because of the Agricultural act of 1949 which has been suspended until December 31 2013.

The International Dairy Federation has reacted favourably to the news:"The International Dairy Foods Association congratulates Congress and President Obama for reaching an agreement on how to address the important 'fiscal cliff' legislation," said Connie Tipton, president and CEO of the International Dairy Foods Association.

"We appreciate that the bill includes provisions that will avoid the resurrection of dairy policies from more than 50 years ago. This agreement allows Congress time to fully and openly consider future reforms to our nation's dairy policies."

However the National Milk Porducers Federation (NMPF) have said that maintaining the status quo is not acceptable as change is required for the benefit of farmers and taxpayers.

Jerry Kozak, President and CEO of NMPF has said that renewing exisiting programmes does not offer dairy farmers a meaning ful safety net.

TheMeatSite News Desk

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