Statement of Connie Tipton, Senior Group Vice President International Dairy Foods Association on Passage of Senate Farm Bill Commodity Title, including Sen. Leahy Dairy Provision

The Senate Agriculture Committee reported a farm bill out of committee that includes a new federal dairy program that would significantly raise milk prices, reduce milk consumption and harm many farmers.

"The Senate Agriculture Committee let expediency triumph over sound policy making," said Connie Tipton, Senior Group Vice President at the International Dairy Foods Association. "Despite strong opposition from consumer, farmer, taxpayer and food industry groups, the Committee gave life to yet another dairy policy scheme, which arose after the Northeast Interstate Dairy Compact expired on September 30."

Proposed by Senator Patrick Leahy (D-VT), this new dairy scheme would be another layer on top of the three federal dairy programs already in place to prop up milk prices. Specifically, it would increase milk prices nationally by $1.8 billion, institute a new government subsidy for dairy farmers up to $300 million annually and provide for new supply management programs, among other things. It was included by the Democrats in an apparent deal to secure enough votes for the commodity title to pass out of the Committee.

"We hope the full Senate will reject this huge transfer of money from consumers to farmers when it comes to the Senate floor," said Tipton. "It's nothing more than a regressive tax on a basic, nutritious product that is found in most families' refrigerators. If passed, this legislation will make milk less affordable for millions of families, especially those already struggling in these difficult economic times."

"We will continue to work with Congress to favor policies that encourage growth and innovation in the dairy industry –and oppose schemes like the one passed by the Senate Agriculture Committee that add cumbersome and costly layers to the government programs that already exist," said Tipton.

According to a new economic analysis done by the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri, the dairy plan would increase beverage milk prices by 10% at a cost to U.S. consumers of $1.8 billion a year while decreasing milk consumption by 100 million gallons per year. FAPRI also found that dairy farms in 7 major dairy states, which account for a third of U.S. milk production, would lose more than $350 million a year in income due to the legislation.

For more information on dairy policy issues, click here.

###