Federal Dairy Policy – Where is MMPA at on the issues?
Minnesota Milk leadership continues to communicate our policy positions to elected officials. Our positions are a result of much research and analysis. Ultimately, the leadership at MMPA believes these positions are the best for Minnesota milk producers.
Minnesota Milk Producers Association supports the concept of a Dairy Margin Insurance Program with USDA supported premiums. Any such margin program must account for beginning farmers and should not be a barrier to entry for beginning farmers. In addition, funding for this or any other safety net program should be administered so as to stabilize the economic performance of small and medium sized dairies, while remaining available to cover financial risks for large scale producers. Delivery through private insurance providers should be considered. Producers should be allowed to buy up their coverage levels. Producer premium structure should not provide a reverse incentive for producers to purchase higher levels of coverage. Premiums and catastrophic risks should be calculated on a sliding scale based on pounds of milk produced.
In addition, Minnesota Milk supports the continuation of the Milk Income Loss Contract (MILC) program. However, MMPA does not oppose the elimination of MILC if a margin insurance program is enacted that includes the provisions listed above.
Minnesota Milk Producers Association does not support any of the existing supply management programs currently proposed.
Minnesota Milk Producers Association supports the development and implementation of strong risk management tools to protect the financial viability of dairy operations, including efforts to educate producers regarding the availability and efficacy of utilizing federal risk management programs.
Minnesota Milk Producers Association supports revisions in the Federal Milk Market Order (FMMO) to promote a pricing system that compensates producers fairly and creates a more dynamic industry by moving away from end-product pricing formulas and make allowances, including the following specific revisions to the FMMO:
1. Including the state of California in the FMMO
2. Competitive Pay Pricing System
3. Improved Price Discovery (i.e. improved storage/inventory reporting)
4. Two Class pricing
5. Support Daily Electronic Inventory Reporting if proven benefits outweigh costs