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PD POLL: Growth management

Published on 03 February 2010

Should any growth management plan include a market access fee on all of the milk produced or just for the new milk produced? What should that price be?

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In the last two issues, we have discussed possible plans to tax all the milk, just the new milk, or have no growth management plan. Many producers have sent in their comments and the issue is very important to dairymen across the country. The following are quotes from those letters.

$6-9 per hundredweight if needed. More or less if demand goes up or down.

[X] New milk – $6-9 cwt

Allen Hipp Producer, Hipp Dairy, Saluda, South Carolina

If the price is not established at a level that the dairy farmer can cover the cost of production they are at the mercy of the processor or co-op. The processor or co-op is also at the mercy of the market if a value has not been established first. The manager’s greatest fear is he will pay more for the raw milk than what he can sell the finished product for. This is how the make allowance came about to take the risk from the processor by subtracting the processing cost from the product value. But the dairy farmer has not established a production allowance and needs one.

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Loren Lopes Producer, Turlock, California

I feel supply management is very important because of the loss of revenue in 2009. I’m hoping the senators and representatives will see how important supply management is. We need better control of our supply of milk. I am hoping you’ll alert the NMP association about how important this is. Get behind the national Holstein Association bill and Lucas Sjostrom representing it. I’m a small dairyman in Iowa and we need $17 and $18 for milk to stay in the dairy business, because land prices are very expensive.

[X] New milk – $8-9 cwt

John Anderson Producer, Anderson Farms, Aplington, Iowa

The biggest thought while I was at Penn State in the 50s was “Get a plan and then work your plan.”

Kenneth Mummert Producer, Sunset Haven Farm, Chambersburg, Pennsylvania

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I think these large “milk factories” should be penalized for these huge expansions.

[X] New milk – $8 cwt

Richard Mansfield Producer, Mansfield Dairy Farm, Cherry Creek, New York

Click here to see the Pro vs. Con of supply management

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