Saturday, April 2, 2011

IDFA PR Release

International Dairy Foods Association (IDFA) has released a thinly disguised salvo over the bow of National Milk Producers Federation (NMPF)and its Foundation For The Future (FFTF).

Asks Ag Committee Chairs to Fund Program for Balance of 2011

Expresses opposition to so-called "Growth Management Programs"

WASHINGTON, April 1, 2011 /PRNewswire-USNewswire/ -- Connie Tipton, CEO of the International Dairy Foods Association, has called on Congress to maintain funding for a federal risk management insurance program for dairy farmers. In a letter to U.S. Sen. Debbie Stabenow (D-MI), chairwoman of the Senate Committee on Agriculture, and U.S. Sen. Pat Roberts (R-KS), ranking member of the committee, Tipton restated IDFA's opposition to any government program that would attempt to control milk price volatility, but affirmed support for the Livestock Gross Margin-Dairy program. Tipton pointed out the program's increased relevance, with more than 1400 contracts issued in FY 2011. Tipton cautioned that USDA has nearly reached its underwriting capacity for the program, and urged the senators to fund the program for the remainder of the year.

"Expanding this program is something that can be done now to help our nation's dairy farmers," wrote Tipton. "There is strong support among both producers and processors for the LGM-Dairy program. As it now stands, the program has insured about 2.4% of the U.S. milk production. Providing additional funding would make it available to more producers who may be just learning about the program for the first time."

The Livestock Gross Margin insurance policy provides protection against the loss of gross margin (market value of milk minus feed costs) on the milk produced from dairy cows. The LGM for Dairy Cattle insurance policy uses futures prices for corn, soybean meal, and milk to determine the expected gross margin and the actual gross margin. IDFA has consistently advocated for a safety net for dairy farmers, including margin insurance like that offered through the LGM-Dairy program.

"While we understand current budget pressures, we urge you to consider funding the LGM-Dairy program for the remainder of this year so that our nation's dairy farmers can be provided the tools available to others in production agriculture," Tipton wrote.

For more information on supply controls, and for the full content of the letter, please visit

NMPF, meanwhile is asking for people to sign on to its FFTF and they will let you know the details later


  1. John,
    I'm beginning think I've stepped through the looking glass. Looks to me like the powers that be want to solve the dairymens problems by any means other than just paying a fair price for milk! Whether its NMPF or IDFA, the plan seems to require an insurance agent. Must be these folks see producing milk in the U.S. as some sort of a casualty event!

    Nate Wilson

  2. Anything to the fact that this was released on April Fool's Day?