MDA Calls for DSA Support 05/21/12 9:37:13 AM
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Larry Purdom (417) 442-3846 or Dave Drennan (636) 519-9300
FOR IMMEDIATE RELEASE
CHESTERFIELD, Mo. (May 14, 2012) -- The Missouri Dairy Association (MDA) has called on Missouri's congressional delegation to support the proposed Dairy Security Act (DSA) in the next Farm Bill.
"It's time to reform dairy policy," said MDA President Larry Purdom and a dairy farmer from Purdy.
In a letter to Missouri's congressional delegation, Purdom said, "Missouri’s dairy farmers have suffered financially because of extreme margin volatility – dramatic swings in the difference between milk prices and feed costs. Our current dairy safety net policies are simply unable to be effective in this roller coaster of volatility.
"Extreme market volatility has contributed to Missouri’s loss of dairy farmers and cow numbers. The impact on our state has been devastating in the loss of jobs on the farm, with needed service providers and with our dairy processing plants. We only produce about half of the milk today that is needed by our state for all uses—fluid milk, cheese, yogurt and butter.
"The two programs that make up our current Federal dairy safety net – the Dairy Product Price Support Program and Milk Income Loss Contract (MILC) program – focus directly on milk prices. What we need today is a policy package focused on the margins between milk prices and feed costs.
"That’s exactly what the DSA does: it provides us with the ability to insure against catastrophically-low margins, such as in 2009 and today. It also helps to moderate the severity of the volatility in milk prices by maintaining better market balance, which benefits Missouri’s consumers as well as dairy farmers, all while relying on less government spending than our current programs – a key for any legislation in this era of necessary budgetary restraint," said Purdom.