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Dairy Policy & Directors ’ Leadership Conference

Dairy Policy & Directors ’ Leadership Conference. April 5, 2011. DIAC Mission. Review issues of: Farm milk price volatility Dairy farmer profitability. AMPI Perspective. C onstruct dairy policies that support family farms, not milk volume. Top Upper Midwest issues. Price support and DEIP

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Dairy Policy & Directors ’ Leadership Conference

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  1. Dairy Policy & Directors’Leadership Conference April 5, 2011

  2. DIAC Mission Review issues of: • Farm milk price volatility • Dairy farmer profitability

  3. AMPI Perspective Construct dairy policies that support family farms, not milk volume.

  4. Top Upper Midwest issues • Price support and DEIP • MILC and Margin • Growth management • Federal milk market orders

  5. Explore elimination of the dairy product price support program and the dairy export incentive program and use budget savings to enhance the safety net for producers. Price Support and DEIP

  6. Modify Milk Income Loss Contract program and provide a margin insurance option using funds from the elimination of the Dairy Product Price Support Program and DEIP. MILC and Margin

  7. Structure, U.S. Dairy Herds

  8. MILC

  9. Measuring margin • Margin defined as: • All Milk Price – Total Feed Cost Per CWT • New NMPF- developed feed cost ration includes all cattle (dry cows, hospital cows, replacement heifers, calves)

  10. Margin

  11. MILC vs. Margin

  12. MILC vs. FFF $4 Margin Target

  13. Adopt a growth management program Growth management

  14. Growth Management Plans • Reduce milk price volatility • Reduce cost of counter-cyclical dairy programs • Allow for continued growth • Not significantly enhance milk prices

  15. Growth Management What is the farm bill going to cost? • CBO scoring • Subsidies

  16. Review federal milk marketing orders Federal milk market orders

  17. Why revise FMMOs? • End-product pricing formulas, make allowances • Class I differentials

  18. DIAC Mission Review issues of: • Farm milk price volatility • Dairy farmer profitability

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