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  Fellow Dairy Producers, Industry Leaders, and Congressional Delegates;

    I am writing to request your consideration and support, and to implement the management tools necessary to prevent the next crisis, which is slated for 2012 if we choose to continue this three year cycle of boom and bust. This devastation can likely be avoided if we prepare ourselves.
    During 2009 there was little argument as markets began to recede, the producer sector found itself relying on tools and policy that proved incapable of correcting a problem, which by years end, had resulted in a loss of producer equity to the extent of $10 BILLION. Devastated and in disbelief, they immediately pointed a finger at leadership, which came to include everyone from the Co operatives and National Milk to those in Congress, existing tools and policy had once again left the farm defenseless. It should be noted that producers themselves own a share of responsibility in this matter, for remaining complacent, and for tolerating policy which has repeatedly placed the farm in jeopardy.
    In order to move forward, since it is the producer sector which we repeatedly find in crisis,
the primary focus of this effort should be on policy that begins by addressing the basic needs of our dairy producers, yet offers the industry an opportunity to participate in global markets. We now have invested considerable effort over several years to identify our problems, discuss corrective action, and recommend policy change, this entire process has moved us closer to an impending crisis with the same policy and tools in place that failed us so miserably during 2009.
    As it appears, U.S. Dairy producers have been operating under national policy based on a false premise. We now recognize that milk produced beyond market demand comes as a detriment to the producer, and that it repeats itself each time that line is crossed, yet many of us demonstrate a reluctance to acknowledge this fact in both policy and practice. The support price for raw milk at $9.90 per cwt. is, in and of itself, evidence reflecting little value to the market for something which costs double that to produce, since this small percentage of milk represents a market surplus on an intermittent basis, and only when markets recede, implementing tools and policy to protect the producer should be of little consequence to others. However, we are faced with an issue perceived as politically volatile, rather than correcting course based upon economic modeling and statistical fact, as should be done, we are also having to consider sentiment and emotion, followed by political leveraging and fear of change. IDFA , on the other hand, recently launched a highly propagandized campaign to ensure an oversupply of milk, as the opportunist in this equation their efforts are nothing short of shameless, and if successful, will come at the producers expense once again.
    We have yet to find the perfect plan, but in the meantime, as a producer, I would appreciate having some very basic tools in place, and suggest considering a program that consists of ideas resulting from our efforts, which appear to be of most use. 1) Begin with a management tool requiring 100% participation to gain control of production as markets recede, 2) Offer a safety net using margin insurance as proposed by National Milk Producers Federation, 3) Address import issues on products such as MPC's, by supporting bill H.R. 2813, recently introduced by Rep. Peter Welch, 4) The Peterson / Simpson bill, H.R. 3062 defers Federal Milk Marketing Order revision to another venue, which is a good move. Today, our base of information and knowledge is greatly expanded from that of a couple of years ago, let's use it.
Typically, most milk producing nations use the global market for balance, as markets recede vulnerability is exposed, and a sustained downturn diminishes assets reducing one's ability to respond.
    Resigning ourselves to the fickle nature of a global market is not reminiscent of America's strength.

Bill Rowell
Dairy producer, Vt.
Chairman, National Dairy Producers Organization