Tuesday, March 31, 2009

How To Misunderstand USDA

The Obama Foodorama figures the taxpayer is paying thrice for the non-fat dry milk Vilsack announced the other day. Because their sources specify the NDM is being moved from CCC inventory to the school lunch program (FNS), I don't see how they misunderstood this, but they did. I guess it helps to have some background in the area. Buying milk products is the basic way USDA supports milk prices. Moving the NDM from CCC to school lunches reduces the stockpile but doesn't have much impact on prices.


Walter Jeffries said...

Sounds like a shell game... :)

Bill Harshaw said...

Cynic. :-)

To support dairy prices, you can't buy whole milk, you have to buy something that's storable, like butter, cheese, and nonfat dry milk. Once CCC buys it, they've got to get rid of the stuff. Sometimes prices will rise enough, they can sell the stockpile back into the market. Of course, that tends to depress prices, which we don't want. So instead CCC will donate it wherever they can. I can remember when welfare recipients got surplus cheese and NDM, not food stamps (and when we had limestone caves in the bluffs near Kansas City full of dairy products.