Changes Enhance 'Foundation For The Future' Policy
US - National Milk Producers Federation’s (NMPF) board of directors have voted to incorporate important changes into the 'Foundation for the Future dairy policy reform proposal.
23 September 2011
2 minute read
As part of the proposed changes, the basic coverage of the Dairy Producer Margin Protection Programme will be set at 80 per cent of base production.
Additionally, producers will have the option of purchasing supplemental coverage on up to 90 per cent of their base production as adjusted for milk production growth.
The Dairy Market Stabilisation Programme has been made voluntary, offering producers options for managing risk on their operations.
The Federal Order proposal has been simplified and is limited to requesting the Secretary of Agriculture to conduct a hearing to change the current end product pricing formula for Class III to a competitive price.
These changes are expected to result in similar changes to the draft dairy policy reform legislation released by Representatives Collin Peterson and Mike Simpson.
NMPF President and CEO, Jerry Kozak, stated: “The underlying objectives we have been pursuing for the past two years – offering a better dairy programme featuring protection, stability, and growth – remain intact in what our Board has endorsed.”
“But by making some adjustments, we strongly believe that many of the concerns raised in the past year to our first approach now have been addressed and eliminated.”
Dairy Farmer's of America (DFA) supports the changes to the Foundation for the future policy proposal, which provides producers with more options to protect their margins and strengthen their ability to export.
The DFA also applauded NMPF's board and management for their efforts.
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