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Farm bill outlines expected to increase dairy program limits

The Chair of the U.S. House Agriculture Committee tells Brownfield dairy farmers will benefit from updates outlined in his draft farm bill released Wednesday.

Congressman Glenn GT Thompson of Pennsylvania says, “We’re updating, definitely updating the data and statistics to reflect more current and appropriately correct feed costs.”

He says milk production caps in the Dairy Margin Coverage program should be increased to better reflect dairy farm consolidation.

Thompson says the chair of the U.S. House Committee on Education and the Workforce intends to send a letter of support calling for the Whole Milk for Healthy Kids legislation to be included in the farm bill.

“Which will be the most important thing that we can do for the dairy industry from a market perspective,” he says.

Thompson says language has been included to change the Class I milk pricing formula back to the “higher of” Class III and Class IV ahead of USDA’s Federal Milk Marketing Order final decisions.

During a briefing with farm broadcasters, Senate Ag Committee Chair Debbie Stabenow said milk pricing reforms were not included in her version of the bill.

“We didn’t leave it out just because we didn’t support it, it was just that it was part of a process that’s going on right now,” she explains.

Stabenow said dairy provisions from her committee would also update production history for farmers enrolled in USDA programs and expand margin production coverage levels to six million pounds.

The Senate legislation also directs USDA to conduct mandatory surveys of dairy plants to increase transparency of make allowance estimates and calls for Dairy Business Innovation Initiative appropriations to increase.

The National Milk Producers Federation says members are excited to work with both committees as the process moves forward and are thankful both chairs included dairy priorities across multiple titles.