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Report" DSA Provides Most Effective Safety Net



(NAFB)--The Midwest Program on Dairy Markets and Policy 2013 Farm Bill Dairy Analysis Group released a report Tuesday that shows the Dairy Security Act provides catastrophic risk insurance and helps enhance farmer revenue - all while minimizing government outlays. National Milk Producers Federation President and CEO Jerry Kozak says the report provides independent corroboration of why the DSA is the best choice for saving dairy farmers while protecting taxpayers. The International Dairy Foods Association also released a paper that says the DSA will raise milk prices and force consumers to pay more for dairy products. Kozak says the Dairy Analysis Group’s report debunks concerns the DSA’s market stabilization element will hinder industry growth or detrimentally affect the dairy industry’s future.


The report compares the DSA to the margin insurance-only proposal. The paper estimates how the programs would operate this year. The report determines the DSA removes nearly 67-percent of the catastrophic risk a typical farm would face in the future. It also shows the DSA’s market stabilization plan reduces the frequency and severity of insurance indemnity payments - while not presenting a long-term obstacle to farm growth. The DSA was approved by both Ag Committees during last year’s farm bill process and Kozak says Congress needs to pass the DSA as part of the 2013 Farm Bill.


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