News

House Ag Committee members: MPP is a failure

 

Leaders of the House Ag Committee acknowledge the Dairy Margin Protection Program is a failure.

During testimony Wednesday, Chairman Michael Conaway of Texas said the underperformance of MPP resulted in very few producers purchasing buy-up coverage, leaving more of them exposed to market vulnerability.  “While the industry is to be commended for making the fundamental shift away from farm support to margin protection, that will only be sustainable if MPP actually proves sufficient risk management going forward.”

 

Ranking Member Collin Peterson of Minnesota agrees, saying the original feed cost indicator formula needs to be restored… but convincing the Congressional Budget Office they’re wrong about the cost won’t be easy.  “I don’t see how they can come with a score of 2.2 billion when I’ve got sheets here that show that isn’t going to, that’s not even going to be remotely close to what is gonna’ be.”

 

Peterson says the MPP needs to be tweaked to make it work, especially for smaller producers.

The House Ag Committee took testimony from National Milk Producers President Jim Mulhern and International Dairy Foods President Michael Dykes.  Both dairy leaders support making changes to the MPP program.