CCAGW Signs Letter to Hill on Dairy Reform Gone Sour | Council For Citizens Against Government Waste

CCAGW Signs Letter to Hill on Dairy Reform Gone Sour

Press Release

For Immediate Release Contact: Leslie K. Paige 202-467-5334
May 8, 2013 Luke Gelber 202-467-5318

(Washington, D.C.) – Yesterday, Tom Schatz, President of the Council for Citizens Against Government Waste (CCAGW), issued a letter to the both the House and Senate Agriculture Committees calling for their members to exclude the anti-consumer Dairy Market Stabilization Program (DMSP) from the 2013 Farm Bill.  CCAGW joined on the letter the National Taxpayers Union, Americans for Tax Reform, R Street, Club for Growth, Taxpayers for Common Sense, FreedomWorks, Cost of Government Center, Competitive Enterprise Institute, American Commitment, Campaign for Liberty, Taxpayers Protection Alliance, and Center for Individual Freedom.  The letter reads in part:

“The U.S. dairy market is a complex tangle of subsidies and price supports.  One example is the current Dairy Product Price Support Program that has the USDA purchase dairy products in order to keep milk prices artificially high.  By interfering in dairy markets, this program has unnecessarily raised prices of dairy products for consumers and has made our dairy exporters less competitive and reliable, limiting industry and job growth.  The price support program has a long history of wasteful spending as the USDA has often ended up with piles of rapidly deteriorating powdered milk and cheese.  Nearly everyone agrees that it is time for the price support program to be eliminated.

“Unfortunately for taxpayers, the Farm Bill proposes to replace milk price supports with the DMSP, a program that will result in more frequent and more intrusive government manipulation of milk prices and markets.  Instead of being triggered only occasionally, the DMSP will be in effect whenever dairy farmer profit margins decline, up to 40 percent of the time according to one study.   Like price supports, the DMSP would manage both supply and demand for milk in order to keep prices artificially high.  Consumers will pay even more for dairy products, government funds will be wasted on dairy purchases, and dairy industry and job growth will be stunted.  Taxpayers and consumers can visit YourMilkMoney.org for more information on the issue.

“After last year’s failed effort to reform America’s outdated agriculture policies, the 2013 Farm Bill must not include the same mistaken provisions.  At a time when all Americans, not just farmers, are experiencing financial hardships in a sluggish economy, taxpayers and consumers simply cannot afford to prop up a single industry.  We urge you to resist all efforts to include the DMSP in the Farm Bill.  Instead of adding more layers of government regulation with the DMSP, we urge that you instead support the deregulation of milk markets so that dairy can resemble other competitive industries across the country.”

The Council for Citizens Against Government Waste (CCAGW) is the lobbying arm of Citizens Against Government Waste, the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.

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