Looking Forward: 2002 Farm Bill

1
Looking Forward2002 Farm Bill

• Roger Cryan
• National Milk Producers Federation
• Cornell Dairy Policy Workshop
• November 27, 2000
• Orlando, Florida

2
DAIRY PRODUCER CONCLAVE

• Atlanta, Georgia
• Dallas, Texas
• Minneapolis, Minnesota
• Sacramento, California
• Syracuse, New York

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DAIRY PRODUCER CONCLAVE
National Milk Producers Federation American Farm
Bureau National Council of Farmer
Cooperatives National Farmers Organization Nationa
l Farmers Union National Grange
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PRINCIPLES OF AGREEMENT

• Common Ground

Mgmt. Animal Health Care Environment Product
Standards Biotechnology Food Safety Communications
Issues Trade Policy Business Issues Economic
Policy
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DAIRY PRODUCER CONCLAVE Economic Policy Consensus

• Dairy price support
• Federal Order concept
• Forward contracting
• - if it doesnt undermine prices
• Antitrust enforcement
• - to ensure downstream competition
• Research and promotion
• Mandatory price reporting to NASS

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DAIRY PRODUCER CONCLAVE Economic Policy Consensus

• Explore
• Other safety net programs Class III
• Inventory management
• Marketing Agency in Common

7
What about 2002?

• Federal Orders
• If changes are necessary,
• Dont change them in Congress
• Handle them through the order
• amendment process

8
What about 2002?

• What if we change the Butter-Powder Tilt?
• Class I, II, IV will drop immediately
• Class III will rise after ca. 2 years, MAYBE
• OVERALL DAIRY FARM INCOME FALLS

9
What about 2002?

• Class III
• Raise Class III income
• Dont undermine overall producer income
• Class III committee to work on approach

10
What about 2002?

• Its early yet
• No record new FOs not yet a year old
• No President
• No precedent for an early Farm Bill
• But the debate will begin next year.
• Conclave principles provide a good base.