Congress is in the midst of considering a new Farm Bill. Lurking in this legislation is a scheme called the Dairy Market Stabilization Program (DMSP). Supporters of DMSP call it “reform,” but in fact it continues the failed command-and-control policies for milk that have existed for decades.
DMSP will limit the supply of milk and, as a result, increase the price Americans pay at the grocery counter for milk and dairy products, like cheese, yogurt, and ice cream. DMSP will also impose a new layer of job-killing regulations on American companies that manufacture dairy products. Please tell Congress today to stop messing with your milk money!
Members of Congress are in the midst of considering a new farm bill, with immense pressure from commodity groups to get it done quickly. Lurking in this legislation is a scheme called the Dairy Market Stabilization Program (DMSP). Don’t be fooled by the title: DMSP is just the latest set of complicated federal rules that meddle with the nation’s milk supply, make prices higher for consumers, and deny everyday Americans the job opportunities they deserve.
Supporters of DMSP call it “reform,” but it will instead be a new layer of government intervention in markets on top of existing federal rules to control the price of milk. DMSP attempts to both limit the supply of milk and increase the demand for dairy products. One absurd consequence of DMSP is that farmers could be penalized for exceeding government milk production “quotas.” Plans like this have been imposed in other countries, including Canada, and have undermined dairy markets and cost consumers.
Everyone knows what happens when the supply of something is restricted: if demand remains constant, prices will still rise. That is exactly what supporters of DMSP want to do with milk. The bottom line: consumers will pay more at the cash register, not only for milk, but for other dairy items such as cheese, yogurt, and ice cream. Moreover, low-income families, who spend a larger percentage of their income on food than other consumers, will be hit hardest.
What’s more, DMSP is a job killer. Constraining supplies will make it less likely that the people who make the dairy foods that Americans enjoy will expand their plants, create new jobs, and increase exports.
Finally, higher dairy prices will hit taxpayers, who foot the bill for federal nutrition assistance programs.