Thank Goodness You've Got Lots of Cash

With the rate of home foreclosures soaring, and
national unemployment rates now taking a flying
leap over the double digit line, thank goodness
American consumers are rolling in cash, or so
the National Milk Producers Federation (NMPF)
expects the United States Department of
Agriculture (USDA) to believe.

With open door access to the decision makers at
USDA, NMPF is lobbying for an emergency retail
price increase for the price of cheese and nonfat
dry milk so that cash-strapped dairy farmers can
boost their income by an estimated $235 million
over the next 90 days.

USDA is considering that request and will soon
render a pro-dairy decision. On Monday, July 6th,
2009, USDA Secretary Tom Vilsack addressed New
Hampshire dairy farmers, saying:

"I will be appointing a special commission to look
at the damaging volatility of the dairy market."

When it comes to USDA's power to increase the
retail price of dairy commodities, there are two
factors which must not be ignored before rendering
a decision. The first is that USDA currently has 200
million pounds of unwanted nonfat dry milk powder
in cold storage. Why raise the price of a commodity
that even starving third-world nations have rejected?

The second factor is that a $235 million dollar income
boost for dairy farmers must be balanced by a $235
income loss billed to consumers. In these hard times,
a subsidy by any other name is still a subsidy, and
with each act of dairy farmer welfare, one must ask
the question:

"At whose expense?"

Robert Cohen
http://www.notmilk.com