Congressman Joe Walsh (IL-8) recently introduced the ‘Dairy Deregulation Act’ to phase out the government's milk price setting regime, called the "Federal Milk Marketing Orders (FMMO)". This program was established in pre-refrigeration 1937 to guarantee that there were no shortages of milk across the country. Today 74 years later, milk is the only major agricultural product with government-mandated prices that differ according to product use.
Walsh stated: “Most taxpayers are unaware that they are paying for their milk twice. Currently American families are taxed to pay for a federal program that directly increases the cost of their milk. This is outrageous. Innocent taxpayers are being taken advantage of on a daily basis by another out-dated, pointless government program.
“It costs American taxpayers roughly $68 million a year to run this program that keeps milk prices artificially high. The price of milk should be set through market demand not government regulations.
“Today we continue to identify and cut wasteful government policies and programs. The House has passed over twenty bills that cut regulations, create jobs, and reduce consumer costs during this Congress. Deregulating the dairy industry will not only achieve administrative savings, but will ultimately provide lower dairy costs for consumers.”