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Dairy Policy & Directors ’ Leadership Conference. April 5, 2011. DIAC Mission. Review issues of: Farm milk price volatility Dairy farmer profitability. AMPI Perspective. C onstruct dairy policies that support family farms, not milk volume. Top Upper Midwest issues. Price support and DEIP
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Dairy Policy & Directors’Leadership Conference April 5, 2011
DIAC Mission Review issues of: • Farm milk price volatility • Dairy farmer profitability
AMPI Perspective Construct dairy policies that support family farms, not milk volume.
Top Upper Midwest issues • Price support and DEIP • MILC and Margin • Growth management • Federal milk market orders
Explore elimination of the dairy product price support program and the dairy export incentive program and use budget savings to enhance the safety net for producers. Price Support and DEIP
Modify Milk Income Loss Contract program and provide a margin insurance option using funds from the elimination of the Dairy Product Price Support Program and DEIP. MILC and Margin
Measuring margin • Margin defined as: • All Milk Price – Total Feed Cost Per CWT • New NMPF- developed feed cost ration includes all cattle (dry cows, hospital cows, replacement heifers, calves)
Adopt a growth management program Growth management
Growth Management Plans • Reduce milk price volatility • Reduce cost of counter-cyclical dairy programs • Allow for continued growth • Not significantly enhance milk prices
Growth Management What is the farm bill going to cost? • CBO scoring • Subsidies
Review federal milk marketing orders Federal milk market orders
Why revise FMMOs? • End-product pricing formulas, make allowances • Class I differentials
DIAC Mission Review issues of: • Farm milk price volatility • Dairy farmer profitability