The House Agriculture Committee’s Subcommittee on Livestock, Dairy, and Poultry held an audit hearing Thursday on how USDA dairy programs are working, current conditions and productivity in the dairy industry, and possible public policy challenges moving forward.

“The events of 2009 exposed what many have long-held to be an inadequacy of some of our current dairy programs. While some observers may argue that additional funding may improve the overall effectiveness of our dairy safety net, our current budgetary outlook makes this option a non-starter,” said Chairman Thomas Rooney (R-FL). “Innovative and effective ideas are needed in order to ensure that our programs support our producers, facilitate product and market development, and continue to ensure the availability of safe, abundant, and affordable products for our consumers.”

USDA Deputy Administrator for Dairy Programs Dana Coale gave an update to the committee on implementation of the Mandatory Price Reporting Act of 2010. “We are on scheduled to hopefully have the program up and running by the first part of 2012,” she said.

Coale noted that USDA issued a proposed rule in June to implement the provisions contained in the Mandatory Price Reporting Act of 2010. Under the proposed rule, AMS would develop the electronic system and collect the data. The comment period closed August 9 and AMS is currently reviewing the seven comments received.

Coale was asked about the status of proposals submitted by the Dairy Industry Advisory Committee to address price volatility. “Of the 23 recommendations that were presented to the secretary, over half of them requested either new funding or higher levels of funding,” she explained. Others required the secretary to have new legislative authority.

“Of the remaining recommendations, the department has completed five of those,” and three others are being considered, said Coale. “So we have taken what the advisory committee has done and we’ve been reviewing it and analyzing it.”

Coale says USDA is also working with Congress to review legislation proposed by Reps. Collin Peterson (D-MN) and Mike Simpson (R-ID) which includes a margin protection program, a Dairy Market Stabilization Program and reforms to the Federal Milk Marketing Order system.