Dick Lugar: “I ask you to join me in making the dairy title of the farm bill equitable to all producers across the country. There is…”

“I ask you to join me in making the dairy title of the farm bill equitable to all producers across the country. There is currently $2 billion available in S. 1731 over the next five years for the dairy program. However, the dairy title of the farm bill currently under consideration on the Senate floor gives special treatment to 12 states at the expense of the remaining 38. Specifically, those producers in the 12 New England states currently producing 18% of our nation's milk, will receive a disproportionate 25% in producer payments. This is inconsistent with the vast majority of other programs where the loan rate, or payment rate for a particular commodity is the same for producers all across the country. There is no market justification for this type of division. FAPRI analysis of S. 1731 shows that the response to these payments would result in depressed market prices. By the last year of the program, estimates predict that income to dairy farmers in every state would be reduced. This is a reduction on all milk--not just milk of a certain level of production. Thus, producers whose milk is not eligible for the payments will be receiving less money for their milk than if the payments were not made at all. To be fair, those producers should not have to pay for this policy. All producers should be allowed to fully participate.”