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Published: April 2013

Dairy Security Act will raise prices on milk and dairy products

The Dairy Market Stabilization Program, included in the Dairy Security Act of the Farm Bill, is specifically designed to raise milk prices and would ultimately increase the prices that consumers pay for milk and dairy products.

Consumer Action and coalition advocates oppose the Dairy Market Stabilization Program and similar dairy programs intended to assist dairy farmers by imposing limits on milk production. Programs which artificially increase milk prices will hit lower income consumers the most as they spend a higher proportion of their incomes on food than do other consumers. Price increases caused by the Stabilization program would negatively impact federal nutrition assistance programs, on which millions of low-income families depend, by increasing program costs and reducing their purchasing power. When government programs are already facing budget cuts, it is counterproductive to decrease the purchasing power of the funding they receive.

In addition, the Stabilization program would prevent prices from falling, depriving consumers of periodic price relief, while providing no protection for consumers from periodic milk price surges.

 

Lead Organization

Consumer Federation of America (CFA)

Other Organizations

Consumer Action | Consumer Federation of America | National Consumers League

More Information

For more information, please visit CFA's website

Download PDF

Dairy Security Act will raise prices on milk and dairy products   (DairyStabilizationProgram.pdf)