Wisconsin State Journal :: OPINION :: A12
Thursday, November 17, 2005
By: John E. Peck
While I thoroughly agree with the need to eliminate costly agricultural subsidy programs such as the Milk
Income Loss Contract, the State Journal editorial of Oct. 24 missed the crux of the dilemma facing dairy farmers
in Wisconsin:
The editorial failed to also call for strict enforcement of existing antitrust legislation to ensure a fair
competitive marketplace.
Persistently low milk prices -- well below the actual cost of domestic production -- are not caused by
oversupply. There is no free market in milk. The United States has been a dairy deficit nation for many years.
The powerful corporations that control the dairy industry would rather have taxpayers foot the bill for rigged
sub-parity farm prices, while also illegally importing bottom-of-the-barrel dairy byproducts from abroad such
as milk protein concentrate.
According to a 2003 report from the University of Tennessee's Agricultural Policy Analysis Center, U.S.
farmers would actually earn more (and consumers would spend less) with the elimination of federal agricultural
subsidies -- but only if the oligopoly grip of the food giants is broken.
The blame for chronic low prices lies with market collusion, insider trading and influence peddling.
Irresponsible agribusiness is more interested in making money off the backs of farmers and consumers, though,
than being a truly competitive provider of wholesome nutritious food.
As long as the profit motives of corporations dictate federal agricultural policies -- and not the real needs of
farmers and consumers -- one can only expect that hapless taxpayers will get milked well into the future.
John E. Peck is executive director of Family Farm Defenders of Madison.
