November 20, 2012

U.S. Senate
Washington, D.C. 20510

Dear Senator,

On behalf of the millions of members and supporters of our organizations, we would like to direct your attention to an important campaign we have recently launched on an agricultural policy matter now before you that has major implications for taxpayers, consumers, and businesses: the Dairy Market Stabilization Program (DMSP).

On November 13, 2012, the Council for Citizens Against Government Waste (CCAGW) and the National Taxpayers Union (NTU) released the second in a series of videos alerting consumers, taxpayers, and the organizations’ membership to the dangers of the DMSP. Additionally, Tom Schatz, President of CCAGW, and Pete Sepp, Executive Vice President of NTU, co-authored a November 15, 2012, Politico op-ed on the DMSP. The DMSP is contained in the $969 billion Federal Agriculture Reform and Risk Management (FARRM) Act, and would launch a new raft of complicated federal rules and regulations. This new program would keep prices high for families who buy dairy products, while also continuing government interference with the nation’s milk supply.

As you may know, our groups have expressed concerns about numerous facets of the FARRM Act and oppose rushing this near-trillion-dollar legislation through the lame-duck session. However the bill may be considered, one of the most egregious elements of the legislation remains DMSP, which has also been discussed as a deficit reduction offset. Either as part of the FARRM Act or standing alone, this program would be a major mistake.

The DMSP will increase prices for milk and dairy foods, such as cheese and yogurt, which will hit low-income families the hardest since they spend a larger percentage of their income on food. The DMSP is precisely the kind of incessant congressional meddling that has outraged American taxpayers, who have a stake in milk prices due to their impact on federal nutrition programs. U.S. dairy policy is already a needlessly convoluted patchwork of government manipulation; instead of grafting more rules and regulations onto an already incomprehensible operation, the federal government should be getting out of the way and letting the free market drive milk drive production.

Taxpayers and consumers can visit YourMilkMoney.org for more information on the issue, as well as additional commentary from Americans for Tax Reform and the Taxpayers Protection Alliance. We hope you will bear our concerns in mind as you weigh dairy policy options for the remainder of 2012 as well as the year ahead. We deeply appreciate your consideration of our views and welcome the opportunity to further discuss these matters with you or your staff.

Sincerely,

Tom Schatz Pete Sepp
President, CCAGW Executive Vice President, National Taxpayers Union