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First Change
Establish the trigger point margin (difference between the all
milk price and the national average feed cost) as being equal to
the national average feed cost. DMSP would be activated when the
margin falls below the national average feed cost.
Second Change
In order to achieve the legislative goal of preventing a
catastrophic loss to dairy producers caused by the over
production of milk which exceeds profitable demand, market
signals recognized as strong and timely need to be sent to the
producer.
Present legislative language does not accomplish this task.
A simple yet effective strategy to keep the supply of milk
balanced with profitable demand could be the following:
“Any time the margin falls below the national average feed cost,
the USDA would immediately notify all dairy producers that after
a period of 30 days, the DMSP would be activated and remain in
effect until the margin once again exceeds the national average
feed cost, at which time DMSP would trigger out and deactivate
the program. During a period of activation, milk producers would
not be paid for milk produced in excess of their base, which is
determined by their average milk marketings made during the 12
month period preceding the notification by USDA. In the event a
producer does not have milk marketings 12, months prior to the
notification, that producer’s base would be the average of his
first three months of milk marketings.”
Under this language, producers who expand their production,
during the period of an active management program, would not
receive payment for their production in excess of their average
milk marketings as established by production records for the 12
month period preceding notification by USDA. Therefore, those
producers who contribute to a supply of milk beyond parameters
established under the program, through an overproduction of
their 12 month average base, would bear a cost beyond the
required reduction to bring the supply of milk back in line with
profitable demand.
Third Change
In order to ensure that a managed domestic milk supply is not
back-filled with imported products, reasonable limitations and
regulation of those imported dairy products and or ingredients
used in the manufacture of a dairy product must be imposed.
Fourth Change
While it is clear that proposed Federal Milk Marketing Order
Reform has minimal dairy producer support it appears it should
be handled in a different forum. It has been suggested that if
FMMO revisions were handled administratively, and allowed input
through a hearing process, it would be of greater benefit not
only to the proposed legislation, but would also serve the
better interests of FMMO revision. |