2011 is a huge year politically for agriculture. The federal Farm Bill will be passed in 2012, and every conceivable interest group is jockeying to get a better deal than the last time around.<\/p>\n
It’s an especially important year for dairy.\u00a0 It’s widely considered necessary to reform the way farmers are paid for their milk, following the 2009 crisis when dairy hemorrhaged billions of dollars in income and equity.<\/p>\n
But if you think there’s broad agreement on how to reform the system, read this article published last week in AgWeek. <\/a><\/p>\n Two titans of the dairy industry, the International Dairy Foods Association (big processors\/milk buyers) and the National Milk Producers Federation (big coops\/milk sellers) basically lock antlers on how to change the system.<\/p>\n The big debate is over “supply management” – in other words, making sure farmers don’t produce too much milk and drive down the price.\u00a0 The Big Coops (NMPF) want it; the Big Manufacturers (IDFA) don’t.<\/p>\n IDFA goes on the offensive, with a new study it funded, which concludes traditional dairy farming areas in the upper Midwest and Northeast would actually lose millions under supply management.\u00a0 Check this back and forth in the article<\/a>, with Connie Tipton representing Big Manufacturers and Jerry Kozak representing Big Coops:<\/p>\n \u201cThis report shows that (National Milk\u2019s) growth management plan will take money out of dairy farmers\u2019 pockets when they need it most,\u201d Tipton said in a release accompanying the report. \u201cMargin insurance and other proposals where processors and producers agree should be part of that plan. Programs to limit milk supply or impose penalties on producers should not even be on the table in our industry discussion.\u201d<\/p>\n Kozak said in a statement the proposal \u201chas been carefully designed to offer protection for their hard-earned equity.\u201d In his statement, Kozak added, \u201cDairy farmers in every state saw their collective milk income drop more than ten billion dollars in 2009, which doesn\u2019t even include billions more in lost equity. This catastrophe was the result of current dairy policy that doesn\u2019t offer farmers of any size, in any state, the protections they need against catastrophic financial losses.<\/p><\/blockquote>\n Doesn’t sound like they’re too close to compromise, does it?<\/p>\n