VISALIA, Calif. — California Dairies, Inc. (CDI) supports dairy producer margin insurance as a stand-alone program as offered in the Goodlatte/Scott Amendment to the Dairy Security Act. Furthermore, the dairy title of the next Farm Bill should include risk management tools for dairy producers.
Both milk and feed markets have become characterized by extreme price volatility, and, consequently, dairy producers have had to work toward developing some proficiency with hedges and forward contracts. These traditional risk management tools have not been easy to learn or navigate for many producers, which has led to much more interest in the development of a margin insurance program.
CDI applauds Congressman Goodlatte who has taken the time to conceive an alternative program that will allow dairy producers to better manage their margins. The voluntary program provides a viable safety net for dairy producers without requiring them to be subjected to government-run supply management constraints.
Source: California Dairies, Inc.
