The United States dairy industry continues to work on solutions for the sustained low milk prices and inadequate safety net farmers are facing. Chris Galen with the National Milk Producers Federation says although USDA has tried to improve the Margin Protection Program it is still not helping dairy farmers to the degree it should be. So they’re talking to Congress about some structural changes including the formula used to calculate margins.
Galen says as the Ag Committees go into the writing of the new farm bill they are advocating changes to MPP, but not a total revamp of the program.
Meanwhile, he says it has been a tough market cycle for dairy producers as milk prices have been under pressure from a number of factors including a global supply glut and a slowdown in exports.
Galen says they are looking for some improvement in milk prices ahead, but not enough for dairy farmers to not rely on MPP payments.
