As we reported last week, Dr. Marin Bozic and Mr. Matt Gould recommended a path forward for the industry to address the quota issue. Their recommendations come after months of work, which included producer think tanks, feedback sessions and critical analysis of the various ideas related to quota.
In summation, Dr. Bozic and Mr. Gould's recommendations include:
• A QIP sunset with a termination date of March 1, 2025, i.e. 5 years from March 1, 2020;
• Equalization of regional quota adjusters such that quota premium in all counties equals $1.43/cwt.;
• A five-year sunset with equalized regional quota adjusters, which provides a cumulative payment of $300 per pound of quota, distributed over 60 months; and
• Implementation of the quota reform plan via a producer referendum.
Dr. Bozic and Mr. Gould will present their recommendations on Tuesday, February 11 at 11 a.m. in the VIP Tent at the World Ag Expo (Farm Show) in Tulare. Please note that the VIP Tent will be located near the Heritage Complex on the west side of the Farm Show and not by the dairy complex as it has been in years past.
Geoff Vanden Heuvel
Director of Regulatory and Economic Affairs