December 14, 2011
Rep. Joe Walsh (R-IL) recently introduced the Dairy Pricing Deregulation Act, which seeks to phase out the federal milk marketing order pricing system over five years. Rep. Judy Biggert (R-IL) is an original co-sponsor.
IDFA urges members to contact their members of Congress and encourage them to co-sponsor H.R. 3372 "to eliminate an expensive and unnecessary regulatory system that has outlived its time and purpose."
December 8, 2011
On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I urge you to support H.R. 3372, the Dairy Pricing Deregulation Act, sponsored by Rep. Joe Walsh (R-Ill.).
U.S. dairy policy dates from the 1930s and remains loaded with Depression-era regulations that fail to serve taxpayers or the dairy industry. One relic is the Federal Milk Marketing Order (FMMO) system that prices fluid milk depending on its end uses and where in the country it is produced.
The historical rationale for the FMMO system – that metropolitan areas needed assurances of a local supply of fresh milk – is long gone; it exists primarily to perpetuate the interests of its stakeholders. The FMMO system creates artificially high milk prices at the expense of taxpayers. The USDA’s Agricultural Marketing Service, which administers the FMMO system, employs more than 350 people in 14 field offices at an annual cost of $48 million.
It is time to end the federal government’s role in setting milk prices using outdated formulas. H.R. 3372 would phase out the FMMO system over the next five years. Nutrition program costs could be reduced by $3.2 billion between 2012 and 2021 if the FMMO system is eliminated. Program efficiencies generated over the same period could save an additional $1.5 billion, for a total of nearly $5 billion over 10 years.
I strongly urge you to support the Dairy Pricing Deregulation Act, a dairy reform plan that would reduce needless regulations, limit government revenues and encourage free markets. All votes on H.R. 3372 will be among those considered in CCAGW’s 2011 Congressional Ratings.