Dairy Farm Resiliency Act
- Sponsor
- Rep. Langworthy, Nicholas A. [R-NY-23]
- Committees
- Agriculture Committee (primary)
- Last action
- Feb 14, 2025
Bottom line
The Dairy Farm Resiliency Act aims to modernize and expand the Dairy Margin Coverage program, potentially offering greater financial stability to a broader range of dairy farms by updating production history and increasing premium thresholds.
What it actually does
This bill amends the Agricultural Act of 2014 to update the Dairy Margin Coverage (DMC) program. It changes how dairy production history is calculated, moving from a fixed historical period (2011-2013) to a rolling 'most recent three-year history, as calculated once every five years'. Additionally, it increases the milk production threshold for Tier I and Tier II premium rates from 5,000,000 pounds to 6,000,000 pounds, allowing more milk volume to qualify for potentially lower premium rates.
Proponents argue
Supporters argue that the current Dairy Margin Coverage program's reliance on outdated production history from 2011-2013 does not accurately reflect the current scale and efficiency of many dairy operations, especially those that have grown since then. Updating this history and increasing the Tier I threshold will make the program more relevant and accessible, providing a crucial safety net for dairy farmers facing volatile milk prices and rising input costs, thereby enhancing the resiliency of the dairy sector.
Opponents contend
Critics might contend that expanding the eligibility for lower premium tiers and updating production history could significantly increase the federal government's financial exposure to the dairy sector, potentially leading to higher taxpayer costs. Some may also argue that such expansions could disproportionately benefit larger, more efficient operations that have grown, rather than focusing support on smaller, struggling family farms, or that it could distort market signals by insulating producers from market realities.
The bill is very short and clear, making it highly accessible for a reader to understand its core changes.
Section 2(a)
Update Dairy Production History Calculation
This provision changes the method for calculating a dairy farm's production history under the Dairy Margin Coverage program. Previously, it was based on production from a fixed period (2011, 2012, or 2013). The bill updates this to use a 'most recent three-year history, as calculated once every five years,' allowing farms to update their covered production to reflect current operations.
Supporters argue
Supporters argue that updating the production history makes the DMC program more relevant and effective for modern dairy farms. It ensures that the safety net reflects current farm sizes and production levels, rather than penalizing farms that have grown or become more efficient since 2013.
Critics contend
Critics might argue that updating the production history could lead to increased federal expenditures without necessarily targeting the most vulnerable farms, potentially benefiting larger operations more significantly and increasing overall program costs.
Tradeoffs
The provision balances the need to provide a relevant safety net for evolving dairy operations against the potential for increased federal spending and the administrative complexity of regularly updating production histories.
Section 2(b)
Increase Tier I and Tier II Premium Thresholds
This provision raises the maximum milk production volume that qualifies for Tier I premium rates from 5,000,000 pounds to 6,000,000 pounds. Tier I premiums are generally lower than Tier II premiums, meaning that farms producing between 5 million and 6 million pounds of milk will now pay the lower Tier I rates for that additional volume, reducing their program costs.