National Milk is exploring an alternative approach to the dairy safety net, according to NMPF’s Chris Galen in today’s DairyLine.
Galen said the plan would hopefully include a margin insurance program with “the proper economic incentives for participants that reflect and help address supply and demand signals that also have some cost control mechanisms.”
NMPF is currently engaging with Ag Committee staff on an alternative dairy safety net which, Galen said, will “include certain inducements to achieve a supply demand balance using the framework of our margin insurance program.” He said they’re hopeful those adjustments would be to the program’s margin insurance payout structure or the premiums that participants would have to pay to name a few.
“We still want and need to have any alternative approach to offer an effective risk management tool for dairy farmers,” Galen charged, and pledged that NMPF will not support any program that “doesn’t effectively address the needs of our members throughout the U.S.” The process is ongoing, according to Galen, although delayed some due to the winter storm this week.