The House Agriculture Subcommittee on Livestock, Dairy and Poultry reviewed a draft dairy bill this week. The dairy policy is part of 2007 Farm Bill deliberations.
The subcommittee recommends making permanent the successful dairy forward contracting pilot program, which operated from 2000-2004, to provide all milk buyers and sellers with much-needed risk management tools. The subcommittee also recommends retaining producer contract protections in the program.
The International Diary Foods Association issued a statement supporting the subcommittee's direction on the policy. "A permanent dairy forward contracting program will go a long way toward improving financial certainty for thousands of dairy producers and processors, and providing a level playing field in the dairy marketplace," says IDFA CEO Connie Tipton.
The committee draft does not address the Milk Income Loss Contract Program.