South Dakota dairy manufacturers wrote to Senator John Thune (R-SD)  to express their opposition to a proposed milk supply management program expected to be included in the draft Farm Bill.

Dairy industry leaders today called for the Senate Agriculture Committee to remove a new dairy program that is designed to control milk prices from the draft 2012 Farm Bill and instead focus on providing proven safety-net programs, such as revenue insurance, typically used for other commodities.

The Dairy Market Stabilization Program as proposed by H.R. 3062, the Dairy Security Act, would manipulate both the supply of and demand for milk in order to push U.S. milk prices higher than open markets otherwise provide, says the president of the International Dairy Foods Association. "Given the importance of exports to our industry's ability to grow and create new jobs, it makes no sense at all for Congress to pass a new supply management program that will restrict our ability to be reliable suppliers and will negatively impact investment decisions by processors regarding new facilities," said Connie Tipton, IDFA president and CEO. 

Dairy farmers attending the World Dairy Expo in Madison, Wis., spoke out today about the dangers of a dairy supply management program included in the Farm Bill. But other farmers support the measure.

More than 30 dairy foods manufacturers – including some of the largest food companies in the United States – have sent letters over the past week to members of the House and Senate, including key agriculture committee members, calling on them to oppose government-imposed limits on milk supply.