Why is the Dairy Security Act (DSA) important to the future of dairy farmers and the health of the dairy producer sector? This document simply and clearly illustrates how a typical farmer with 200 cows would have benefitted by having the DSA in place in 2012. The charts it contains examine how an average size farm, with average production, and purchasing a modest amount of supplemental margin insurance, would have benefitted last year – at a time when milk prices dropped, feed costs increased, and margins were very tight.
This assessment has one clear conclusion: the DSA would have increased income by about $1 per hundredweight on all milk produced in 2012 for farmers enrolled in the DSA who purchased supplemental coverage at the $6.50 level, even after subtracting out all costs related to the program.
The Farm Bill is now coming up for a vote again in Congress. Please reaffirm your support for the Dairy Security Act, and urge your members of Congress to pass the legislation as a complete package.