presents Law and Order must be established to the Dairy Industry’s “ Wild, Wild West Market Chaos” by Bryan Gotham Hermon, N.Y., Dairy Farmer http://128.122.253.144/T-Shirts/nanmv/wildwest.JPG

presents

Law and Order must be established to the Dairy Industry’s

“ Wild, Wild West Market Chaos”

My Search for Law and Order Unchecked markets have created high levels of unfair lawless market Chaos. To survive globally we must adapt and reduce chaos by becoming better organized supply managers. Milk Market Improvement Act of 2009 (S.889) provides solutions for Law and Order. It is not another band aid and it eliminates excuses.

Unchecked markets have created high levels of unfair lawless market Chaos.

To survive globally we must adapt and reduce chaos by becoming better organized supply managers.

Milk Market Improvement Act of 2009 (S.889) provides solutions for Law and Order. It is not another band aid and it eliminates excuses.

Import Chaos Globalization - American dairy farms have a resource disadvantage compared to New Zealand and Australia. We cannot compete. The effects of Globalization must be managed because it is not going away. Today Globalization is dominating our market and history has proven it adds to volatility and mostly negative Market direction. Imports of food should be driven by need not by greed.

Globalization - American dairy farms have a resource disadvantage compared to New Zealand and Australia. We cannot compete.

The effects of Globalization must be managed because it is not going away. Today Globalization is dominating our market and history has proven it adds to volatility and mostly negative Market direction.

Imports of food should be driven by need not by greed.

Imports Need Law and Order In jeopardy for consumers: food Sovereignty, food safety and food quality. American Dairy farmers can not be responsible for the worlds oversupply Burdon caused by imports. With order, we will be responsible for our own domestic oversupply. Dairy imports have grown at a rate faster than domestic production past two decades. $3 billion today. (source: Jerry Kozak of National Milk Producers Federation) Concentrated Imports have a higher milk equivalent than exports dollar for dollar.

In jeopardy for consumers: food Sovereignty, food safety and food quality.

American Dairy farmers can not be responsible for the worlds oversupply Burdon caused by imports. With order, we will be responsible for our own domestic oversupply.

Dairy imports have grown at a rate faster than domestic production past two decades. $3 billion today.

(source: Jerry Kozak of National Milk Producers Federation)

Concentrated Imports have a higher milk equivalent than exports dollar for dollar.

Today we don’t have a Supply & Demand Challenge We have an Import Export Challenge

“ Asymmetric pricing" Needs Law and Order Wanted Symmetrical Pricing from Farm to Retail

The Sheriff is in Town S.889 – Shoots Down Asymmetric/Apex Pricing S.889 provides a stable price Based on National Average Cost of Production. S.889 provides simple price discovery calculated by the Economic Research Service on 23 states Note: research is already conducted, no expanded government The price is not set by the Secretary of Agriculture it is adjusted according to changing market data compiled by ERS S.889 would raise on farm receipts annually from est. 28 billion to 42 billion if it was in place today. ALL Manufactured Milk Price  Class II State & Federal orders and Class I Differentials remain intact

S.889 provides a stable price Based on National Average Cost of Production.

S.889 provides simple price discovery calculated by the Economic Research Service on 23 states

Note: research is already conducted, no expanded government

The price is not set by the Secretary of Agriculture it is adjusted according to changing market data compiled by ERS

S.889 would raise on farm receipts annually from est. 28 billion to 42 billion if it was in place today.

ALL Manufactured Milk Price  Class II

State & Federal orders and Class I Differentials remain intact

S.889 Rebalances Profit S.889 provides new growth and economic policy for Rural America. S.889 is the Young Dairyman’s bill. S.889 supports the trend towards promoting local food. It secures the Homegrown food supply for National Security, food sovereignty and sustainability . Farmers will have a chance to pay income taxes and contribute to this economy. S.889 rebalances the profit back to small business from “Big Food”.

S.889 provides new growth and economic policy for Rural America.

S.889 is the Young Dairyman’s bill.

S.889 supports the trend towards promoting local food.

It secures the Homegrown food supply for National Security, food sovereignty and sustainability .

Farmers will have a chance to pay income taxes and contribute to this economy.

S.889 rebalances the profit back to small business from “Big Food”.

To Reduce Import Chaos S.889 uses a Carrot S.889 balances the responsibility for the over supply from Globalization between the farmer and manufacturer. To take advantage of the guaranteed market funded by farmers imports must be less than exports . This puts responsibility on manufactures for over production caused by excessive imports.

S.889 balances the responsibility for the over supply from Globalization between the farmer and manufacturer. To take advantage of the guaranteed market funded by farmers imports must be less than exports . This puts responsibility on manufactures for over production caused by excessive imports.

S.889 provides Farmer Funded Supply Control When needed, the Supply Management is two tiered. The first tier is funded by all farms on up to 5% of milk on up to 50% of the class II price. The overproduction base on the second tier and it is a Temporarily Active Base. I personally am not in favor of a permanently active base. The S.889 oversupply production base is only used as a last resort to control supply. You can produce all the milk you want but only get paid for what the market needs when there is an extreme oversupply. Each tier has the potential of generating a Billion dollars to rebalance supply. S.889 treats all farms sizes equally on both tiers. Food pantries, School lunch and other food programs benefit from the Dairy Farmers Abundance.

When needed, the Supply Management is two tiered. The first tier is funded by all farms on up to 5% of milk on up to 50% of the class II price. The overproduction base on the second tier and it is a Temporarily Active Base. I personally am not in favor of a permanently active base.

The S.889 oversupply production base is only used as a last resort to control supply. You can produce all the milk you want but only get paid for what the market needs when there is an extreme oversupply.

Each tier has the potential of generating a Billion dollars to rebalance supply.

S.889 treats all farms sizes equally on both tiers.

Food pantries, School lunch and other food programs benefit from the Dairy Farmers Abundance.

Less Government, Taxpayer $avings The cost of S889 would be minimal since it would use existing entities such as ERS, Market Administrators, FSA and FAS. Much of the required data collection is already being done or could be done with little additional expense. Support Program will be obsolete. Products are purchased at the market not support. MILC Program eliminated. All current Government food program obligations remain in effect like WIC. S.889 was written by farmers and not Government. Our Government’s role changes and finally brings Law and Order to the greed and corruption that has wiggled into our market.

The cost of S889 would be minimal since it would use existing entities such as ERS, Market Administrators, FSA and FAS. Much of the required data collection is already being done or could be done with little additional expense.

Support Program will be obsolete. Products are purchased at the market not support.

MILC Program eliminated.

All current Government food program obligations remain in effect like WIC.

S.889 was written by farmers and not Government.

Our Government’s role changes and finally brings Law and Order to the greed and corruption that has wiggled into our market.

Adapting to Globalization to Survive We need a new Business Attitude. Common sense, law and order is needed to prevent the damage for everyone involved. We must think like other small business (retail stores) managing their inventory surpluses. I Argue we can still be American Dairymen that strives to be above average. To compete globally, we must become organized supply managers rather than chaotic supply managers. We must swim together or we all will sink together.

We need a new Business Attitude.

Common sense, law and order is needed to prevent the damage for everyone involved. We must think like other small business (retail stores) managing their inventory surpluses.

I Argue we can still be American Dairymen that strives to be above average.

To compete globally, we must become organized supply managers rather than chaotic supply managers. We must swim together or we all will sink together.

Trade Issues? Is S889 consistent with the U.S.’ WTO obligations? Since the supply management is farmer funded, the main target is domestic supply and demand. Therefore, the legislation does not rely on government subsidies allowing us to believe it is consistent with the US’ WTO obligations . Will S889 require changes to the current tariffs and quotas pertaining to imports of dairy products into the U.S.? No changes in current tariffs and quotas would be required under this legislation.

Is S889 consistent with the U.S.’ WTO obligations?

Since the supply management is farmer funded, the main target is domestic supply and demand. Therefore, the legislation does not rely on government subsidies allowing us to believe it is consistent with the US’ WTO obligations .

Will S889 require changes to the current tariffs and quotas pertaining to imports of dairy products into the U.S.?

No changes in current tariffs and quotas would be required under this legislation.

S.889 In Summary New Non corrupt Price Discovery Processors have incentive to Curb Imports when there is oversupply Farmers have new signals to reduce supply instead of having milk price disasters

New Non corrupt Price Discovery

Processors have incentive to Curb Imports when there is oversupply

Farmers have new signals to reduce supply instead of having milk price disasters