WASHINGTON (Oct. 28, 2011) – National Farmers Union sent a letter to leaders on the U.S. House of Representatives and Senate Agriculture Committees urging them to continue working to reform dairy policy in the farm bill as part of the Joint Select Committee on Deficit Reduction (Super Committee) process. The Dairy Security Act of 2011 (DSA) could lead to further vertical integration of the dairy industry if additional steps are not taken.
“The DSA, in its most recent form, will likely encourage the use of forward contracts,” said NFU President Roger Johnson. “For many years, NFU has opposed the increased use of forward contracting for dairy producers. Similar to the consolidation and vertical integration that has occurred in the poultry and swine sectors, the DSA could lead to increased forward contracting by dairy processors will only serve to transform the American dairy industry at a heavy cost to farmers and rural communities.”