Farm Bill Has Market Stabilization Plan for Milk
Vermont's congressional delegation says the farm bill passed by the U.S. Senate that includes a program aimed at stabilizing milk prices is a good step forward. WAMC’s North Country Bureau Chief Pat Bradley reports…
A provision of the voluntary program is designed to stop the dramatic swings in prices, by discouraging the oversupply of milk and allowing farmers to buy insurance that pays out when prices plummet.
When milk prices drop, farmers produce more to pay their bills, flooding the market which causes prices to drop further. Under the farm bill, farmers who participate would decrease production when prices drop and could buy insurance on a margin between production cost and the price of milk.
The delegation said Monday that Vermont farmers helped get the provision into the bill by starting a discussion about controlling the milk supply.
I’m Pat Bradley, WAMC News.
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