“Although a sudden and unpredictable increase in milk prices may result in a short-term financial windfall to dairy producers, the immediate implementation of the 1949 Act would dramatically increase government spending, would force consumers to pay significantly more for dairy products and would impose long-term damage to the dairy industry,” IDFA stated in the letter.
Congress has not been able to come to agreement on new farm legislation and likely will need to pass an extension of existing law, as they have done for most farm bills passed in the last 30 years. Dairy policy remains just one area where there is significant controversy about how the government should update agricultural policies.
“In the event that no action is taken by Congress prior to the end of the year, we urge you to consider other legal authorities that are available to mitigate the impact of the 1949 Act. If you conclude that you are required to proceed with implementation, we urge that you proceed in a thoughtful and deliberate manner using the formal rulemaking process. This will enable stakeholders, not just dairy producers and processors but also food manufacturers, food retailers, consumers and others, to voice their concerns prior to the implementation of any new rule,” IDFA noted.
SOURCE International Dairy Foods Association