A broad spectrum of stakeholders, including dairy farmers, processors, agricultural policy experts, public interest organizations, and farm commodity groups, have called for reform of current federal dairy programs in the 2007 Farm Bill.

Highlights of what some of them have to say about the need for a new policy direction on dairy are presented below.

Northeast Dairy Experts – Growth & Opportunity for the U.S. Dairy Industry (January, 2007)
"The dairy price support program in conjunction with make allowances in federal orders encourages the production of products the market does not necessarily want. And the MILC program provides limiter countervailing price protection to some producers, and not others. What is needed is a clear strategic plan for the U.S. dairy industry and a new approach to policies that will support that plan."

Wisconsin Dairy Business Association – Dairy Policies Outdated (May 31, 2006)
"Our organization of dairy farm families, cooperatives, agricultural lenders and manufacturers recognize we are at a critical moment in history whereby fundamental reform is essential for the long-term health of our industry."
– John Vreize, President of Wisconsin Dairy Business Association

Idaho Dairymen's Association – Recommendations for Dairy (2006)
"In this Farm Bill, dairy programs must be dealt with - MILC is not fair or effective for dairy producers across the nation, and the price support program has no function - to keep it on the books gives a false sense of security. Every dairy farm in the U.S. should have the ability to set up a long term contract for their milk. Long term contracts are a key element that dairy farms can use to get a decent return on investment."
– Mike Quesnell, President of Idaho Dairymen's Association

A Fresher Dairy Policy
Washington Post, March 24, 2007
By Constance Tipton, President & CEO, IDFA

Forward Contract Limit Unfair to Farmers
Green Bay Press-Gazette, March 30, 2007
By Rod Kinnard, Guest Columnist

Subsidy Programs Aren't Working
Burlington Free Press, March 19, 2007
By Michael Quaid

Help for Dairy Farmers
Omaha World-Herald, March 6, 2006
By Dwight Hasselquist

USDA – Economic Effects of Dairy Policy (July, 2004)
"When the market price has fallen toward the price support safety net and thus is calling for an adjustment in supply, the results are partially muted by the MILC program, which, by providing production-linked funds to milk producers, may encourage production and retard the supply adjustment. The result is that milk prices stay lower longer than they otherwise would, increasingly the likelihood of larger CCC purchases, and raising costs for both programs."

ERS – U.S. Dairy at a Global Crossroads (November, 2006)
"... the benefits of government support can be modest and, in the long run, distort market signals and discourage producers from pursuing new opportunities."

OMB Dairy Price Support Program Assessment (2006)
"The price support program has resulted in large, costly stocks of skim milk powder, and has contributed to an oversupply of dairy capacity in certain regions and in certain dairy product categories, discouraging private investment in dairy products that are currently imported (such as MPCs)."

USDA Inspector General Audit of Dairy Program (September, 2006)
"FSA lacks a cohesive and comprehensive management control structure to ensure that commodity inventory assets are disposed of in accordance with the Corporation's disposition policies and all legal requirements."

DOJ Comments on Federal Milk Market Orders (January, 1992)
"USDA regulations currently establish minimum prices dairies must pay for milk supplies. These regulations increase the cost to consumers of fresh fluid milk, and effectively prevent consumers from being able to purchase commercially reconstituted milk...The regulations, while raising the price of milk paid by consumers, also have led to a wasteful overproduction of raw milk, which must be processed into cheese and ultimately purchased by the government at taxpayer expense."