Tuesday, December 15, 2009

Need Floor Price


Tougher banking regulations enacted in response to last year's financial crisis are hitting farmers and ranchers as they apply for operating loans, forcing many to put up more cash right away and give better proof they can pay the loan back.

HR 3935 Floor Price
On October 27, 2009 Congressman Steve LaTourette (R-Oh.)introduced H.R. 3935 which would establish a temporary, one year, minimum floor price under Class II & III milk.
The bill has no cosponsors and was sent to the graveyard of all most all dairy bills, the House Agriculture Committee, headed by Collin Peterson. Peterson has long been a friend of the big dairy players and this is not a bill big dairy wants.

However, the present dairy crisis is essentially a credit crisis. Dairy farmers are now facing massive credit shortfalls and are desperately in need of loans. On the other hand, even if farm milk price rises, banks will be reluctant to loan to dairy farms until they see evidence of price stability. This bill would build banker’s confidence.

The rationale for the price levels is based upon the average production costs for milk in the 23 lead dairy states and the historic relationship between Class II and III. Class I would automatically be affected. Class IV, which is the main class involved in world trade, would not.

Congressman LaTourette is not well known in the DC dairy circle, however, he has been a part of the financial committee and knows the financial and credit issues facing dairy farmers. He is to be commended for the effort.


  1. A floor or minimum price as starters and then a new pricing system that is fair, not controlled by speculators and not created by Rube Goldberg. One based on economic parity would be best. If a production control system needs to be put in place to keep it viable then so be it. Surely we can't do any worse than what we have now.
    Fair equitable prices for milk and culls will not only get you credit but also pay your other bills and ensure a safe domestically produced food supply for this country.
    Doing nothing will get you more of the same.
    The folks with the cows still hold all the cards, maybe we should play our hand before the game is lost?
    Sedition, yes. But does anybody see any other way?

  2. A friend in OH told me the other day he has called his local office for Sen. Sherrod Brown till they are sick of hearing from him. Their bottom line response? NOTHING WILL BE DONE ABOUT DAIRY PRICING TILL THE NEXT FARM BILL. By then, who will be left?

    So now, Coach Bunting, the ball, as always, is in our hands. What play do we run---Hail Mary as usual or some smash-mouth up the middle slobber-knocker? We await your guidance.


  3. The next farm bill is already forming by the same people who brought us to this point.

    I do not think we can wait until the next anything. The situation is far worse than those with power and vested interest are willing to admit.

    Therefore we need, absolutely need, a temporary floor price while a new system is forged.

  4. Why is the Sec of AG so reluctant to give us a temporary floor price? Who is putting pressure on him?

  5. How can we unite to break the cycle of power?
    What are the things we need to be doing to boycott the powers that be?

  6. Where exactally is the "Milk Mafia" trying to take the dairy industry? At first I thought they want to drive out all the small farms and then take ownership of the larger farms. But they really don't want the responsibility or heaven knows the "men in white" don't want to oversee or manage the work. So where are they leading us?

  7. I hate to be the one that brings this up but dont blame the other people for this mess, but why dont we blame ourselfs, farmers are as greedy as wall street, cant stand to milk 100 cows for 20/hundred lets milk 200 cows for 10.00 makes sence doesnt it? we never learned from the turkey farmers, pig farmers, dairy is just last, we hire mexicans because of labor, if we got rid of the illegal'''''''labor than maybe we can get more money, our goverment needs the food, corn gets to be 6.00 a bushel, what happens? get the dozer out and clear more land, my respectgoes out to the farmers who spill there guts out working without falling for the greed most fall for, there is no honor in that, also when u take this farming mess up with our elected people, let me tell u a better way , go to walmart, buy a fan, stand back and piss in it, it will go alot farther then these people helping u, u want to make a difference farmers then do as u want to do, not what the goverment wants, thanks