Transition is in the air in Washington, DC, and it has nothing to do with the weather or the end of the football season. All of the news lately in our nation’s capitol has been about the new administration of Barack Obama, and what it means for America and the world. It will also mean some changes for dairy policy; more about that in a moment.

The big issues surrounding the arrival of President-elect Obama are both social and economic. For many people, Obama’s election represents not just the turning of a page in the cultural history of the U.S.; for many, his presidency symbolizes an entirely new chapter. The power of that change is undeniable.

The other element in transition here, and it’s more matter-of-fact than symbolic, is the direction of the economy. Not since Franklin Roosevelt came to Washington 76 years ago has a new president arrived in the Oval Office with such an anemic, enfeebled economy. The litany of bad economic reports seems to grow by the day. The difference between 1933 and today is that, back then, the federal government wasn’t widely viewed as a means to effect major economic change. FDR’s presidency changed that. Time will tell whether President Obama uses his office to effectuate a similar degree of change in this country, in this century.

Obama’s new administration, including former Iowa Governor Tom Vilsack as Agriculture Secretary, will face some serious challenges in agricultural policy as well. Dairy commodity prices have crashed in the past two months, and farm-level milk checks will reflect that plunge in the months ahead. Even if the downturn is short-lived, we’ll be experiencing milk prices we haven’t dealt with in more than six years.

We are optimistic that just as the new team in the White House will use its legislative, regulatory and rhetorical powers to jump-start the banks, the auto makers, and other key sectors of the economy, the same path will be followed by the new team at the USDA.

For starters, let’s hope they don’t try another effort to weaken the price support program by selling nonfat dry milk at levels that run afoul of the laws governing the dairy product price support program. (My column last month [0] talked about how NMPF successfully prevented such a sale in December; as of early January, the USDA has notified us the agency will not attempt any such action in the future).

Let’s also hope the new administration uses all the tools at its disposal to help boost prices. One easy way would be to implement the Dairy Export Incentive Program. The DEIP gives the U.S. the ability to export modest quantities of nonfat dry milk, cheese and butter, utilizing the resources of the government. Unfortunately, the DEIP hasn’t been used for five years, even when prices have dipped and the program’s impact would have been tangible. As Obama’s economic advisors look for tools to help the overall economy, we need some new thinking at USDA on the dairy policy tools already at their disposal.

Hopefully, the new team will look for ways to stabilize and enhance producer prices as we face a steep recession. I believe that the government’s key role is providing a safety net that, during harsh economic times like these, allows many of our farmers to stay afloat and survive until the market makes a recovery. It is USDA’s role to ensure that the safety net is used, not abused. We are optimistic that the new team in Washington takes that concept seriously.

If times of great crisis also present great opportunities for change, then we have many opportunities ahead of us in 2009. Let’s hope we have the wisdom and the will to make them work.

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