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Research and ReportsRead the Informa report, “DMSP (Dairy Market Stabilization Program) Potential Impact on U.S. Dairy Exports”A new report shows that increased dairy exports have been driving over two-thirds of the growth in the U.S. dairy industry and that the available studies of the proposed supply management program in the Farm Bill predict that it will cause a reduction in exports, even with the program’s suspension clause.
The report, “DMSP (Dairy Market Stabilization Program) Potential Impact on U.S. Dairy Exports,” finds that the U.S. dairy industry has moved from a “mostly inward-looking, closed system to a market driven largely by exports and international prices.” It warns that the “frequency and severity of price spikes resulting from supply control programs could reduce long-term competitiveness” and require lower U.S. prices to continue to increase U.S. milk production. The Dairy Market Stabilization Program as proposed by H.R. 3062, the Dairy Security Act, would manipulate both the supply of and demand for milk in order to push U.S. milk prices higher than open markets otherwise provide. Read "A Look at Dairy Market Price Volatility and Options for Dairy Policy Reform" by IDFA Chief Economist Bob Yonkers, Ph.D.An economic review drawing from analyses of a controversial dairy market stabilization program shows that, if implemented, the program would slow U.S. job growth in agriculture, curtail the U. S. dairy industry's export potential and impede worldwide food security while increasing domestic price volatility. The economic review, "A Look at Dairy Market Price Volatility and Options for Dairy Policy Reform," was released today by the International Dairy Foods Association.drawing from analyses of a controversial dairy market stabilization program shows that, if implemented, the program would slow U.S. job growth in agriculture, curtail the U. S. dairy industry's export potential and impede worldwide food security while increasing domestic price volatility. The economic review, "A Look at Dairy Market Price Volatility and Options for Dairy Policy Reform," was released today by the International Dairy Foods Association. Read the Informa Report on Regional and Farm Level Impacts of the Foundation for the Future’s Dairy Market Stabilization ProgramThe Dairy Market Stabilization Program (DMSP) proposed by the National Milk Producers Federation would withhold payments from farmers who deliver milk in excess of their “base” level when milk prices are low relative to feed costs. The money withheld from the farmers would be used to encourage the consumption and exports of U.S. dairy products. The program was designed with the goal of reducing margin volatility. The potential withholdings from dairy farmers varies greatly by state, depending on the number, size, and growth of dairy farms and milk production. If the program had been in place from 2000 to 2009, we estimate that it would have withheld $626 million from dairy farmers during periods when they were already under significant financial pressure. In 2009, the worst financial year on record for dairy farmers, $390 would have been withheld, with the majority of it, $236 million, coming from just five states; Wisconsin, New York, Minnesota, Pennsylvania, and Michigan. Informa Responds to FAPRI Criticism of Report on Regional and Farm Level Impacts of the Foundation for the Future’s Dairy Market Stabilization ProgramRead the Informa Report on How Supply Controls Have Fared in Other Countries
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Supporting Dairy Growth - Creating Jobs - Strengthening Economies
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