Dairy Budget Reconciliation And Self Help Initiative Act of 1993 Hearing Befor

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Dairy Budget Reconciliation And Self Help Initiative Act of 1993 Hearing Befor
United States Congress House Committee On Agric
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Our consumption is growing at about 3 percent a year. That is one of the arguments we have under current law. If you get your refund back you have to produce not 1 pound above what you produced last year. If your market is growing 3 percent, it would seem to me that if you don't increase your production more than 3 percent you are not adding to a surplus to a market that is growing.
We would hope through this bill to build that kind of flexibility. So as long as production is growing at a 1 per
...cent figure, we have nothing to worry about under current circumstances because our consumption figures are growing faster than that.
Mr. DooLEY. My point is that people are increasing production in some parts of the country and maybe not in others and they are doing so often not because they are trying to maximize losses, but they are trying to increase profits and income. Somebody is re- sponding to some market signal that is out there, and that is where I am concerned about what we are doing here, even though I think this is structured in a manner that doesn't have nearly the level of concern in terms of the false signals to the producer, but we are impeding in some instances the adoption of methods that are going to enhance efficiencies euid productivity.


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