10-10 IAN Simpson Dairy Support

 Rep. Simpson champions bill to strengthen future for Idaho dairy producers.

The Idaho Dairymen’s Association recently applauded Idaho Congressman Mike Simpson for taking a strong stand on behalf of the dairy industry as lead Republican proponent of the Dairy Security Act. The new bill promotes, and in some areas, expands components of the dairy industry plan. Last March, Idaho dairy producers voted to recommend a dramatic reform package –Foundation for the Future--(FFTF) – which served as the model for the Dairy Security Act of 2011. During that vote, 86 percent of Idaho’s dairy producers were represented. FFTF is an effort spearheaded by dairy producers and cooperative members of the National Milk Producers Federation.

 Like FFTF, the Dairy Security Act includes a voluntary margin insurance program and a Dairy Market Stabilization Program, which work together to encourage lower milk production during periods of declining market demand and low margins.

Bob Naerebout, IDA’s executive director said “There are also improvements in this bill. “For instance, the basic level of margin insurance coverage increased from 75 to 80 percent of a producer’s production history, the supplemental margin insurance allows producers to purchase more coverage for milk production growth.There are numerous government programs, ethanol being the biggest one, that impacts the cost of heat and drives those costs factors extremely high. The margin insurance offers some protection in trying to assist producers in establishing a margin between their cost of production and what they get paid for their milk. We are extremely pleased with the bill because it does much more than our current programs do and we are very pleased with Representative Simpson’s coming out as a co-sponsor.