Why The Farm Bill Matters To The Dairy Industry

The Farm Bill remains a priority for Congress as we move closer to November’s mid-term elections.  The farming community is hopeful legislation will be passed by the end of the year; but that may be a bit optimistic.  With prices volatility in the dairy industry, the incentives and safety nets remain extremely important.

“The difference I think this time around is not so much with the depth of the milk price decline, as it is with the persistence of it," said Mark Stephenson, director of dairy policy analysis for the University of Wisconsin-Madison. "We’re going into the 4^th year of relatively low prices, and that’s really starting to take its toll on dairy farmers.”

Because of the current state of the U.S. dairy business, Stephenson said it’s more important than ever for Congress to authorize an impactful Farm Bill.  He notes MPP, which was changed earlier this year to lower premiums, is a major part of Farm Bill conversations.

“That program will have paid out something like $0.62/cwt. over the course of this year, for the Tier I levels of protection.  So, if you happen to be a producer at the margin that’s enough to pay some bills, and to do some things that you need to do on the farm until prices recover.”

Stephenson said Congress may act on the 2018 Farm Bill before the year’s end, but much will depend on the outcome of November’s mid-term elections.

Until then, he said, dairy producers will continue to do their best, with what they have.

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